Question

If the original price of an article is 500 and the rate of VAT is 7%. What is its price including

the VAT?

Answer 1

Selling price = 535

Explanation:

Given the following data;

Original price = 500

Value-added tax (VAT) = 7%

To find the selling price of the article;

VAT (7%) = 7/100 * 500

VAT (7%) = 3500/100

VAT (7%) = 35

Selling price = Original price + VAT

Selling price = 500 + 35

Selling price = 535

Therefore, the price of the article including the VAT is 535.