PERCENTAGES 2

The price of a Radio which includes VAT, is Tsh. 40,000/= . If the rate of VAT is 18%, find the price of TV before VAT was added.

 Solution

VAT = 18% x 40,000/=

         = 18  x 40,000/=

          100

       = 7,200/=

Price of Radio before VAT = 40,000 – 7200

                                               = 32800/=

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.