Subjects algebra

Vat Amount

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1. **State the problem:** We need to find the VAT amount included in a total price of 402.50 when the VAT rate is 15%. 2. **Understand the relationship:** The total price includes the original price plus 15% VAT. So, if the original price is $P$, then the total price is $P + 0.15P = 1.15P$. 3. **Set up the equation:** Given total price is 402.50, we have $$1.15P = 402.50$$ 4. **Solve for the original price $P$:** $$P = \frac{402.50}{1.15} = 350$$ 5. **Calculate the VAT amount:** VAT is 15% of the original price, so $$\text{VAT} = 0.15 \times 350 = 52.50$$ 6. **Final answer:** The VAT amount included in the price is 52.50.