Question:
The cost of furniture inclusive of VAT is Rs 7150. If the rate of VAT is 10%, find the original cost of the furniture.
Solution:
Cost of the furniture inclusive VAT $=$ Rs. 7150
Let the original cost of the furniture be Rs. $x$.
Cost of the furniture $=10 \%$ of $x+x$
$7150=1.10 x$
$x=\frac{7150}{1.10}$
$=$ Rs. 6500
Thus, the original cost of the furniture is Rs. 6500 .
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