The sale price of a TV set including VAT is Rs.27000. If VAT is charged at 8% of the list price, what is the list price of the TV set?

Answer

To find the list price of the TV set, we need to follow these steps:

### Step 1: Understand the relationship between the list price, VAT, and sale price.
The sale price (SP) of the TV set includes the list price (LP) plus the VAT. The VAT is calculated as a percentage of the list price.

### Step 2: Set up the equation.
Let the list price of the TV set be \( LP \).
The VAT is 8% of the list price, which can be expressed as:
\[ \text{VAT} = 0.08 \times LP \]

The sale price including VAT is given as Rs. 27000. Therefore, we can write the equation:
\[ SP = LP + VAT \]
Substituting the VAT into the equation gives us:
\[ 27000 = LP + 0.08 \times LP \]

### Step 3: Combine like terms.
We can combine \( LP \) and \( 0.08 \times LP \):
\[ 27000 = LP (1 + 0.08) \]
\[ 27000 = LP \times 1.08 \]

### Step 4: Solve for the list price.
To find \( LP \), we can rearrange the equation:
\[ LP = \frac{27000}{1.08} \]

### Step 5: Calculate the list price.
Now, we can perform the division:
\[ LP = \frac{27000}{1.08} = 25000 \]

Thus, the list price of the TV set is Rs. 25000.

### Summary of Steps:
1. Understand the relationship between sale price, list price, and VAT.
2. Set up the equation based on the given information.
3. Combine like terms to simplify the equation.
4. Rearrange the equation to solve for the list price.
5. Calculate the final value of the list price.