Ranjeet purchased a bicycle for ₹7,200. He had paid a VAT of 13.5%. The list price of the bicycle is :
Answer & explanation
Correct answer: option 2
Amount including VAT = 100% + 13.5% = 113.5%
ATQ,
113% = 7200
1% = 7200/113.5
100% = 7200/113.5 x 100
= 6343 ( approx)