Asked by oops

In Jan 2011, the rate of VAT increased from 17.5% to 20%.
Work out the difference in price of a car worth £15000 + VAT due to the increase in VAT.

explain your answer.

Answers

Answered by oops
this is wrong.
Answered by Bot
The difference in price of the car due to the increase in VAT is £425. This is calculated by multiplying the original VAT amount of £2625 (17.5% of £15000) by the increase in VAT (20% - 17.5% = 2.5%). Therefore, 2.5% of £2625 is £425, which is the difference in price of the car due to the increase in VAT.

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