An item costs R200 excluding VAT. VAT is charged at 15%. What is the price including VAT?
Answer and explanation
Correct answer: B. R230
- Step 1: VAT = 15% of R200 = R30.
- Step 2: Price including VAT = R200 + R30 = R230.
Answer
R230.
Why not the others: R170: VAT was subtracted instead of added. R215: 15 was added as rand instead of 15%. R203: the VAT rate was taken as 1,5%.
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