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! =)
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.
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,
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.
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?