[Solved] A TV costs £800 plus VAT at 20%. What is the total cost of the TV?
According to the question, A TV costs £800 plus VAT at 20%. We have to find the total cost of the TV.
Concept used.
The concept used in this question is calculating the total cost of a product that includes value-added tax (VAT).
VAT is a type of consumption tax that is added to goods and services in some countries.
It is calculated as a percentage of the product’s base price, and the total cost is the base price plus the VAT.
Method 1
Solution: From the question, it is given that ;
TV costs £800 plus VAT at 20%
As per the condition given in the question,
Total cost of the TV = Cost + VAT at 20%
VAT = 20% of the cost
VAT = 0.2 × 800
⟹VAT = £160
⟹The total cost of the TV = Cost + VAT
The total cost of the TV = 800 + 160
Hence, the total cost is £960.
Method 2
To find the total cost of the TV, you need to calculate the value-added tax (VAT) and add it to the base price of the TV. Here’s how you can do it:
Calculate the VAT by multiplying the base price by the VAT rate: £800 × 20% = £160
Add the VAT to the base price: £800 + £160 = £960
Therefore, the total cost of the TV is £960.
Method 3
Alternatively, you can use the following formula to calculate the total cost, including VAT:
Total cost = base price + (base price × VAT rate)
Using this formula, you would get the following:
Total cost = £800 + (£800 * 20%) = £800 + £160 = £960
Conclusion for A TV costs £800 plus VAT at 20%
A TV costs £800 plus VAT at 20%. The total cost of the TV is £960.