An item costs R800 excluding VAT. VAT is charged at 15%. What is the price including VAT?
Answer and explanation
Correct answer: C. R920
- Step 1: VAT = 15% of R800 = R120.
- Step 2: Price including VAT = R800 + R120 = R920.
Answer
R920.
Why not the others: R680: VAT was subtracted instead of added. R815: 15 was added as rand instead of 15%. R812: the VAT rate was taken as 1,5%.
Practise more Percentages and tax.
Free questions with an explanation for every one, and full timed National Benchmark Tests (NBT) mock tests.
More Percentages and tax questions
- A jacket is marked at R1 500 and a discount of 25% is offered. How many rand are taken off the price?
- A jacket is marked at R240 and a discount of 5% is offered. How many rand are taken off the price?
- A jacket is marked at R360 and a discount of 5% is offered. How many rand are taken off the price?
- A jacket is marked at R850 and a discount of 5% is offered. How many rand are taken off the price?
- A jacket is marked at R2 400 and a discount of 18% is offered. How many rand are taken off the price?
- A jacket is marked at R850 and a discount of 8% is offered. How many rand are taken off the price?