Mohini purchased a computer for Rs 37960 including VAT at 4%.

Question:

Mohini purchased a computer for Rs 37960 including VAT at 4%. What is the original price of the computer?

Solution:

Let the original price of the computer be Rs $x$.

$\mathrm{VAT}=4 \%$ of Rs. $x$

$=$ Rs. $\left(x \times \frac{4}{100}\right)$

$=$ Rs. $\frac{4 x}{100}$

$\therefore$ Price including VAT $=$ Rs. $\left(x+\frac{4 x}{100}\right)$

$=$ Rs. $\frac{104 x}{100}$

Now, $\frac{104 x}{100}=37960$

$\Rightarrow x=\left(37960 \times \frac{100}{104}\right)$

= 36500

∴ The original price of the computer is Rs 36,500

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