Malti bought a VCR for Rs.19980 including VAT. If the original price of VCR be Rs.18500, find the rate of VAT.

Answer

To find the rate of VAT that Malti paid on the VCR, we can follow these steps:

### Step 1: Identify the given values
- Cost price including VAT (CP) = Rs. 19,980
- Original price (OP) = Rs. 18,500

### Step 2: Calculate the VAT amount
The VAT amount can be calculated by subtracting the original price from the cost price:
\[ \text{VAT} = \text{CP} - \text{OP} \]
\[ \text{VAT} = 19,980 - 18,500 = 1,480 \]

### Step 3: Calculate the rate of VAT
The rate of VAT is calculated using the formula:
\[ \text{Rate of VAT} = \left( \frac{\text{VAT}}{\text{OP}} \right) \times 100 \]
Substituting the values we found:
\[ \text{Rate of VAT} = \left( \frac{1,480}{18,500} \right) \times 100 \]

### Step 4: Perform the calculation
Calculating the fraction:
\[ \frac{1,480}{18,500} \approx 0.08 \]
Now, multiplying by 100 to find the percentage:
\[ 0.08 \times 100 = 8\% \]

### Final Answer
The rate of VAT is **8%**.

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