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Help with Percentages Question

Hi guys, I need help with this percentages question please,
A coat costs £900, 5% of which is VAT tax. Assuming VAT tax is abolished, how much does the coat cost now?Than
Thanks guys! =)
Think of the £900 as 100% of the price. What would be the percentage without the 5%? How could you then find this percentage of the original price?


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Reply 2
Original post by ΘTheta
Hi guys, I need help with this percentages question please,
A coat costs £900, 5% of which is VAT tax. Assuming VAT tax is abolished, how much does the coat cost now?Than
Thanks guys! =)

Call C the cost of the coat before tax. C has been increased by 5% to give the new amount (900) so :

C x 1.05 = 900

Can you find C?


Alternatively, think of the £900 as 105% of the cost of the original coat (which corresponds to 100%). So 105% = 900, what does 100% equal? This is a ratio question that you should have done before:

105% = 900
100% = ___


Both methods are doing the same thing, just expressed a bit differently.
Reply 3
Original post by notnek
Call C the cost of the coat before tax. C has been increased by 5% to give the new amount (900) so :

C x 1.05 = 900

Can you find C?


Alternatively, think of the £900 as 105% of the cost of the original coat (which corresponds to 100%). So 105% = 900, what does 100% equal? This is a ratio question that you should have done before:

105% = 900
100% = ___


Both methods are doing the same thing, just expressed a bit differently.


I see. Got it. Thanks!

But say the cost of the coat is 100% of the tax, and this tax is abolished,

When you do C x 2 =700, so C = 350, not 0.
Why?
Reply 4
Original post by Malgorithm
Think of the £900 as 100% of the price. What would be the percentage without the 5%? How could you then find this percentage of the original price?


Posted from TSR Mobile

That's not going to work. The value without tax is not a 5% decrease from the £900.
Reply 5
Original post by ΘTheta
I see. Got it. Thanks!

But say the cost of the coat is 100% of the tax, and this tax is abolished,

When you do C x 2 =700, so C = 350, not 0.
Why?

C x 2 = 700

This calculation would be done if the tax was 100%. So if the original cost of the coat was £350 then the cost with tax would be 350 + 350 = 700.

The cost of an item cannot be tax only. Tax is added as a percentage of an amount. If the cost of the coat was £0 to begin with then whatever the tax, it will stay as £0.
Reply 6
Original post by notnek
C x 2 = 700

This calculation would be done if the tax was 100%. So if the original cost of the coat was £350 then the cost with tax would be 350 + 350 = 700.

The cost of an item cannot be tax only. Tax is added as a percentage of an amount. If the cost of the coat was £0 to begin with then whatever the tax, it will stay as £0.


Oh right.
If the question said, that the coat costed £800, and a tax with the value to 12.34% s added, will the new cost be 800*1.1234=£898.72,
right?

Thanks
Reply 7
Original post by ΘTheta
Oh right.
If the question said, that the coat costed £800, and a tax with the value to 12.34% s added, will the new cost be 800*1.1234=£898.72,
right?

Thanks

Yes that's right.

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