Billy buys a fridge

Question

VAT a rate of 20% is applied to the price of the fridge
Billy pays a total price of £480 for the fridge
Work out the price of the fridge before the VAT is added

Answer 1

To find the price of the fridge before VAT is added, we can work backwards by subtracting the VAT from the total price.

Let X be the original price of the fridge.
The price of the fridge after VAT is added is X + 20% of X, which is X + 0.2X = 1.2X.
Billy pays a total price of £480, so we can set up the equation:

1.2X = £480.

To solve for X, divide both sides of the equation by 1.2:

X = £480 / 1.2 = £400.

Therefore, the price of the fridge before the VAT is added is £400.