Q81 of 96 Page 287

Prachi bought medicines from a medical store as prescribed by her doctor for Rs 36.40 including 4% VAT. Find the price before VAT was added.

Given that, the price of medicine including 4% VAT is 36.40.

We have, selling price = cost price + VAT


⇒ Cost price = Selling price - VAT


⇒ The price before VAT was added = price including VAT – VAT



= 36.40 - 1.456


= Rs.34.944


= Rs.35


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