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Vikram bought a watch for Rs. 825. If this amount includes $10 %$ VAT on the list prices. What was the list price of the watch?

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Rs.279

Rs.750

Rs.825

Rs.729

answer is B.

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Detailed Solution

Given, selling price (SP) =Rs.825,
Rate of value added tax = 10%.
Let the list price of the watch be Rs. X,
Therefore,

list price × rate of tax 100 = X × 10 100 ⇒ 10 X 100 ⇒ Rs .0 .1 X

Now, cost price is,

Cost price = Selling price − value added tax ⇒ X =Rs .825 − Rs .0 .1 X list price = X ⇒ 1 .1 X =Rs .825 ⇒ X = 825 1.1 ⇒ X = Rs .750

Thus, the list price of the watch is Rs.750.
Therefore, option (2) is correct.

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