Home work Abigail bought a 65 inch television for Gltd 5290.00 including VAT of \( 15 \% \). calculate the © Actual cost oq the machine (b) VAT paid on the machine.

Sure, let's break down the problem step by step. **Given:** - **Total Price (including VAT):** Gltd 5,290.00 - **VAT Rate:** 15% **To Find:** 1. **Actual Cost of the Machine (excluding VAT)** 2. **VAT Paid on the Machine** --- ### **a) Actual Cost of the Machine (Excluding VAT)** The total price includes the VAT. To find the actual cost before VAT, we can use the following formula: \[ \text{Actual Cost} = \frac{\text{Total Price}}{1 + \text{VAT Rate}} \] Plugging in the numbers: \[ \text{Actual Cost} = \frac{5,290.00}{1 + 0.15} = \frac{5,290.00}{1.15} \] \[ \text{Actual Cost} = 4,600.00 \text{ Gltd} \] --- ### **b) VAT Paid on the Machine** There are two ways to calculate the VAT paid: 1. **Subtract the Actual Cost from the Total Price:** \[ \text{VAT Paid} = \text{Total Price} - \text{Actual Cost} = 5,290.00 - 4,600.00 = 690.00 \text{ Gltd} \] 2. **Calculate 15% of the Actual Cost:** \[ \text{VAT Paid} = \text{Actual Cost} \times \text{VAT Rate} = 4,600.00 \times 0.15 = 690.00 \text{ Gltd} \] Both methods give the same result. --- ### **Final Answers:** **a) Actual Cost of the Machine:** Gltd 4,600.00 **b) VAT Paid on the Machine:** Gltd 690.00