Billy buys a fridge
VAT a rate of 20% is applied to the price of the fridge
Billy pays a total price of £480 for the fridge
Work out the price of the fridge before the VAT is added
To find the price of the fridge before VAT is added, we can work backwards by subtracting the VAT from the total price.
Let X be the original price of the fridge.
The price of the fridge after VAT is added is X + 20% of X, which is X + 0.2X = 1.2X.
Billy pays a total price of £480, so we can set up the equation:
1.2X = £480.
To solve for X, divide both sides of the equation by 1.2:
X = £480 / 1.2 = £400.
Therefore, the price of the fridge before the VAT is added is £400.