Sajal purchased some car parts for Rs 20776 including VAT at 12%.

Question:

Sajal purchased some car parts for Rs 20776 including VAT at 12%. What is the original cost of these spare parts?

Solution:

Let the original cost of the spare parts be Rs $x$.

$\mathrm{VAT}=12 \%$ of Rs. $x$

$=$ Rs. $\left(x \times \frac{12}{100}\right)$

$=$ Rs. $\frac{12 x}{100}$

$\therefore$ Price including VAT $=$ Rs. $\left(x+\frac{12 x}{100}\right)$

$=$ Rs. $\frac{112 x}{100}$

Now, $\frac{112 x}{100}=20776$

$\Rightarrow x=\left(20776 \times \frac{100}{112}\right)$

= 18550

Hence, ​the original cost of the spare parts is Rs 18,550.

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