The price of watch including 10% VAT is Rs. 825. What is its basic price?

Options

A. Rs. 742.50
B. Rs.775
C. Rs.750
D. Rs.907.50

Answer

To find the basic price of the watch before VAT, we can follow these steps:

### Step 1: Define the variables
Let the basic price of the watch be \( x \).

### Step 2: Understand the relationship between basic price and total price
The total price of the watch including VAT is given as Rs. 825. Since VAT is 10% of the basic price, we can express this relationship mathematically:
\[ \text{Total Price} = \text{Basic Price} + \text{VAT} \]
This can be written as:
\[ 825 = x + 0.10x \]

### Step 3: Combine like terms
Combine \( x \) and \( 0.10x \):
\[ 825 = x + 0.10x = 1.10x \]

### Step 4: Solve for \( x \)
To find \( x \), we need to isolate it. We can do this by dividing both sides of the equation by 1.10:
\[ x = \frac{825}{1.10} \]

### Step 5: Calculate the value of \( x \)
Now, we perform the division:
\[ x = \frac{825}{1.10} = 750 \]

### Conclusion
The basic price of the watch is Rs. 750.

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