Andrew buys a Laptop for £600 which includes 20% VAT. What is the price of the Laptop without VAT?
£600 includes 20% VAT Therefore £600 is 100% of original price + 20% from VAT, meaning £600 is a 120% price increase in accordance to original price.120% as a decimal is 1.2 - simply divide by 100 to get % into decimals We want to find out the price before VAT and therefore we must have a lower sum then we started withAnswer = £600 / 1.2 = £500
Marks awarded 2, 1 for working 1 for answer If correct answer is given then 2 marks are awarded
However. need to highlight importance of always showing your workings.
AM
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