The price of a watch including 8% VAT is Rs. 810. What is its basic price?
Given:
The price of a watch including 8% VAT is Rs. 810.
To do:
We have to find its basic price.
Solution:
Let the basic price of the watch be $x$.
This implies,
$810=x+\frac{8}{100}x$
$810=x(\frac{108}{100}$
$x=\frac{810\times25}{27}$
$x=30\times25$
$x=750$
The basic price of the watch is Rs. 750.
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