Manoj buys a leather coat costs RS.900 at Rs.990 after paying the VAT .Calculate the rate of VAT of the coat.
rate=(990-900)/900=.10 or ten percent
To calculate the rate of VAT, we need to know the VAT amount and the original price of the item, in this case, the leather coat.
Let's begin by finding the VAT amount:
VAT amount = Final price - Original price
Given:
Final price = Rs. 990
Original price = Rs. 900
VAT amount = 990 - 900 = Rs. 90
Now, let's calculate the rate of VAT:
Rate of VAT = (VAT amount / Original price) * 100
Rate of VAT = (90 / 900) * 100 = 10
Therefore, the rate of VAT for the leather coat is 10%.