PERCENTAGES 1

The price of a Radio which includes VAT, is Tsh. 50,000/= . If the rate of VAT is 18%, find the price of TV before VAT was added.

 Solution

VAT = 18% x 50,000/=

         = 18  x 50,000/=

          100

       = 9,000/=

Price of Radio before VAT = 50,000 – 9000

                                               = 41,000/=

TRY THIS………………………..

NECTA 2004, QN 6a

The price of a TV set which includes VAT, is Tsh. 133,800/= . If the rate of VAT is 30%, find the price of TV before VAT was added.