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The sales price of a television, inclusive of VAT, is Rs. 13,500. If VAT is charged at the rate of $8 %$ of the list price, find the list price of the television.

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Rs. 12600

Rs. 13500

Rs. 12500

Rs. 14500

answer is B.

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Detailed Solution

Given,
Sale price including VAT=Rs.13500
VAT charged = 8%
Let the list price of the television be x,

⇒ List price × Rate of value added tax 100 = Rs . X × 8 100 ⇒ Rs .8 X 100 ⇒ Rs .0 .08 X

Now, sale price is,

⇒ Sale price = List price + List price × Rate of value added tax 100 ⇒ Rs .13500 = X + 0.08 X List price = Rs . X ⇒ Rs .13500 = 1.08 X ⇒ X = Rs . 13500 1.08 ⇒ X = Rs .12500

Hence, the list price of the television is Rs.12500.
Therefore, option (2) is correct.

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