question_answer

      A colour TV is available for Rs. 26880 inclusive of VAT. If the original cost of the TV is Rs. 24,000, find the rate of VAT.

Answer:

Let the rate of VAT = x%

Then      \[24000\text{ }+\text{ x}%\text{ }of\text{ }24000\text{ }=\text{ }26880\]

or \[\frac{x}{100}\times 24000=26880-24000\]

or                   \[240x\text{ }=\text{ }2880\]

or                  \[x=\frac{2880}{240}=12\]

Therefore,                 Rate of VAT = 12%