Question:
Manoj buys a lather coat costing Rs 900 at Rs 990 after paying the VAT. Calculate the rate of VAT charge on the coat.
Solution:
Let the rate of VAT be $x \%$.
Then,
VAT $=$ Rs. $\left(\frac{x}{100} \times 900\right)$
$=$ Rs. $9 x$
So,
$900+9 x=990$
$9 x=90$
$x=10$
Thus, Manoj was charged $10 \%$ VAT on the leather jacket.
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