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3 years ago

In January 2011 the rate of VAT increased from 17.5% to 20%

Mathematics

2 answers:

Degger [83]3 years ago

8 0

Answer: Difference between in price of a car due to increase in VAT is $375.

Step-by-step explanation:

Since e have given that

Price of car = $15000

Rate of VAT = 17.5%

So, Amount of tax becomes

$\frac{17.5}{100}\times 15000\\\\=17.5\times 150\\\\=\$2625$

So, Total Price he has to pay is given by

$\$15000+\$2625\\\\=\$17625$

but According to question,

Rate of VAT = 20%

So, Amount of tax becomes

$\frac{20}{100}\times 15000\\\\=20\times 150\\\\=\$3000$

So, Total price he has to pay is given by

$\$15000+\$3000\\\\=\$18000$

Difference between both the price due to increase in VAT is given by

$\$18000-\$17625\\\\=\$375$

Hence, difference between in price of a car due to increase in VAT is $375.

77julia77 [94]3 years ago

5 0

I believe it went from 2625 to 3000, so the difference is <span>£</span>375

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