The cost of a T.V with VAT 5% is ₹ 26,250 then the cost of that T.V is
A) ₹ 21,000
B) ₹ 52,000
C) ₹ 25,000
D) ₹ 16,000
Correct option is (C) ₹ 25,000
Let the cost of T.V. is Rs x.
Value (cost) after VAT = Rs(x + 5% of x)
= \(Rs(x+\frac5{100}x)\)
= \(Rs(x+\frac x{20})\)
= \(Rs\frac{21x}{20}\)
\(\therefore\frac{21x}{20}\) = 26250 (Given)
\(\Rightarrow\) x = 26250 \(\times\frac{20}{21}=1250\times20\) = 25000
\(\therefore\) The cost of the T.V. is Rs 25000.