Mohini purchased a computer for Rs. 37960 including VAT at 4%. What is the original price of the computer?

Answer

To find the original price of the computer before VAT was added, we can use the following steps:

### Step 1: Identify the given values
- Sale price including VAT = Rs. 37,960
- VAT percentage = 4%

### Step 2: Understand the relationship between sale price and original price
The sale price (including VAT) can be expressed in terms of the original price (let's denote it as \( P \)) and the VAT:
\[ \text{Sale Price} = P + \text{VAT on } P \]
Since VAT is calculated as a percentage of the original price:
\[ \text{VAT} = \frac{\text{VAT percentage}}{100} \times P \]
Thus, we can rewrite the sale price as:
\[ \text{Sale Price} = P + \frac{4}{100} \times P = P \left(1 + \frac{4}{100}\right) = P \left(\frac{104}{100}\right) \]

### Step 3: Rearranging the formula to find the original price
From the above relationship, we can express the original price \( P \) as:
\[ P = \frac{\text{Sale Price}}{1 + \frac{\text{VAT percentage}}{100}} = \frac{\text{Sale Price}}{1.04} \]

### Step 4: Substitute the values into the formula
Now we can substitute the sale price into the formula:
\[ P = \frac{37,960}{1.04} \]

### Step 5: Calculate the original price
Now we perform the calculation:
\[ P = \frac{37,960}{1.04} = 36,500 \]

### Conclusion
The original price of the computer before VAT was added is Rs. 36,500.

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