A bike costs £ including VAT at . What was the price before VAT was added?
Answer and explanation
Correct answer: C. £150
- Step 1: The price with VAT is times the original price.
- Step 2: Original .
Answer
£150.
Why not the others: £144: This takes off the VAT-inclusive price, but of £ is more than the VAT actually charged. £160: This subtracts pounds, treating the percentage as an amount. £216: This adds VAT again to a price that already includes it.
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