The price of a watch including 8% VAT is Rs.810. What is its basic price?

Options

A. Rs.675
B. Rs.729
C. Rs.750
D. Rs.745

Answer

To find the basic price of the watch before the 8% VAT was added, we can follow these steps:

### Step 1: Understand the relationship between the basic price and the final price with VAT
Let the basic price of the watch be denoted as \( x \). The final price after adding 8% VAT can be expressed as:
\[ \text{Final Price} = \text{Basic Price} + \text{VAT} \]
Since VAT is 8% of the basic price, we can write:
\[ \text{Final Price} = x + 0.08x = 1.08x \]

### Step 2: Set up the equation
According to the problem, the final price (including VAT) is Rs. 810. Therefore, we can set up the equation:
\[ 1.08x = 810 \]

### Step 3: Solve for \( x \)
To find the basic price \( x \), we need to isolate \( x \) in the equation. We can do this by dividing both sides of the equation by 1.08:
\[ x = \frac{810}{1.08} \]

### Step 4: Calculate the value of \( x \)
Now, we perform the division:
\[ x = \frac{810}{1.08} = 750 \]

### Conclusion
Thus, the basic price of the watch before VAT is Rs. 750.

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