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Q.

Ravi bought a mixer grinder for Rs. 6600 including a tax of 10%. What was the price of the mixer grinder before VAT was included?

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a

4000

b

6000

c

7200

d

7260

answer is B.

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Detailed Solution

  Given, Selling price of mixer grinder = Rs.6600   VAT included in the price = 10%   Let us understand first for Rs.100, in general.  For Rs.100, 10% VAT will be = 10   If we add the VAT to Rs.100, then the selling price becomes 100 + 10 = Rs.110   Therefore,  The price including tax is Rs 3300, the original price = 100/110 x 6600 = 6000  Hence, the price of mixer grinder before adding Value added tax was Rs.6000.

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