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If 5% VAT is included in the price of a shampoo bottles bought for Rs. 550 then what is the original price of the shampoo?

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450

520

550

500

answer is B.

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Detailed Solution

Let the original price of the shampoo be Rs. x
Sales tax = 5%
= 5% of x
= 5/100 × 𝑥 = Rs. 5𝑥/100
Buying price = Cost price + Sales tax
550 = x + 5𝑥/100
550 = 105𝑥/100

x = (550×100)/105 = 523.80 ∼ 520

The original price of the shampoo is Rs. 520.

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