Subjects finance, algebra

Vat Calculation

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1. **Problem statement:** We are given the total cost of a pair of chinos including VAT as 750. 2. **Identify variables:** Let the net price (price before VAT) be $P$ and the VAT rate be $r$ (usually 15% i.e. 0.15 if not specified, but since not given, we assume 15%). 3. **Express total cost with VAT:** Total cost = $P + P \times r = P(1 + r)$. 4. **Find net price:** $P = \frac{750}{1 + 0.15} = \frac{750}{1.15} = 652.17$ (rounded to 2 decimals). 5. **Calculate VAT amount:** VAT = Total cost - Net price = $750 - 652.17 = 97.83$. 6. **Conclusion:** The VAT amount included in the price is $97.83$.