If a store sells a packet of gum for R5.50 ,what will the cost for the gum be if you add the VAT?

Answer 1

To calculate the cost of the gum with VAT, we need to know the rate of VAT. Let's assume a standard VAT rate of 15%.

The VAT amount is calculated by multiplying the cost of the gum by the VAT rate:
VAT = R5.50 * 0.15 = R0.825

The cost of the gum including VAT is the sum of the original cost and the VAT amount:
Cost with VAT = R5.50 + R0.825 = R6.325

Therefore, the cost for the gum including VAT would be R6.325.