A contractor supplied some items to a school. The contractor's bill is shown below. If each amount includes 5% VAT calculate how much the government receives as VAT. Electrical fittings = #52 500.Stationery #84 000 ;sports equipments #262 000;computers #672 000; school lockers #157 500.
VAT = 0.05*(52,500+84,000+262,000+672,000+157,000) =
To calculate how much VAT the government receives, we need to find 5% of each amount and then add them together.
1. Electrical fittings: The amount is ₦52,500. To find 5% of this amount, we can multiply it by 5/100:
VAT for electrical fittings = ₦52,500 * 5/100 = ₦2,625
2. Stationery: The amount is ₦84,000. To find 5% of this amount, we can multiply it by 5/100:
VAT for stationery = ₦84,000 * 5/100 = ₦4,200
3. Sports equipment: The amount is ₦262,000. To find 5% of this amount, we can multiply it by 5/100:
VAT for sports equipment = ₦262,000 * 5/100 = ₦13,100
4. Computers: The amount is ₦672,000. To find 5% of this amount, we can multiply it by 5/100:
VAT for computers = ₦672,000 * 5/100 = ₦33,600
5. School lockers: The amount is ₦157,500. To find 5% of this amount, we can multiply it by 5/100:
VAT for school lockers = ₦157,500 * 5/100 = ₦7,875
Now, to calculate the total VAT received by the government, we just need to add up all the individual VAT amounts:
Total VAT = ₦2,625 + ₦4,200 + ₦13,100 + ₦33,600 + ₦7,875
Adding all these amounts together, we get:
Total VAT = ₦61,400
Therefore, the government receives a total VAT of ₦61,400 from the contractor's bill.