Question

A computer costs £927 plus VAT, where VAT is charged 20% find the total cost of the computer

Answer 1

A computer costs 927 plus VAT where VAT is 20%. We need to find the total cost of the computer.

The total cost = original cost + VAT

Total Cost = 927 + 20% * 927

20% converts to decimal by moving the decimal 2 units up, so it is 0.2

= 927 + 0.2*927

Multiply to find value of tax

= 927 + 185.4

Add to find the total cost

Total cost = 1112.4 euros