Waheeda bought an air cooler for ₹3300 including a tax of 10%. Find the price of the air cooler before VAT was added.
Understand the Problem
The question is asking us to calculate the original price of an air cooler before a 10% VAT was added. We are provided with the final price, and we will use this information to find the original price by applying the principles of VAT calculation.
Answer
The original price of the air cooler before VAT was added is ₹3000.
Answer for screen readers
The original price of the air cooler before VAT was added is ₹3000.
Steps to Solve
- Identify the final price and VAT percentage
The final price Waheeda paid for the air cooler is ₹3300, which includes a VAT of 10%.
- Define the original price formula
Let the original price be denoted as ( P ). The total price including VAT can be expressed as: $$ \text{Final Price} = P + \text{VAT} $$ where VAT is ( 10% ) of ( P ), or ( 0.1P ). So, we can write: $$ \text{Final Price} = P + 0.1P = 1.1P $$
- Set up the equation
Since we know the final price is ₹3300, we set up the equation: $$ 1.1P = 3300 $$
- Solve for the original price ( P )
To find ( P ), divide both sides of the equation by ( 1.1 ): $$ P = \frac{3300}{1.1} $$
- Calculate the original price
Now perform the division: $$ P = 3000 $$
The original price of the air cooler before VAT was added is ₹3000.
More Information
VAT (Value Added Tax) is a type of indirect tax that is levied at each stage of production. The amount of VAT included in the final price can help determine the base price before tax. In this case, the VAT represented 10% of the original price.
Tips
- Misplacing the decimal: When dividing to find the original price, it's easy to miscalculate the division by not correctly accounting for the decimal.
- Confusing percentages: Sometimes users forget to convert the percentage properly when calculating VAT. It’s crucial to express it as a decimal (e.g., 10% as 0.1).
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