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A TV set was bought for Rs 26,250 including 5% VAT. The original price of the TV set is 

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A TV set was bought for Rs 26,250 including 5% VAT. The original price of the TV set is 

(a) Rs 27,562.50 (b) Rs 25,000 (c) Rs 24,937.50 (d) Rs 26,245

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Best answer

(c) Rs 24,937.50

Explanation: 

Cost price of TV set = Rs. 26250.

VAT including = 5%

Original price = Cost price of article including VAT = 26250 – (5/100) x 26250

= 26250-1312.5

= 24,937.50

Therefore, original price of TV set is = Rs. 24,937.50

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