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The Car's cost is 9,00,000 and it is inclusive of local tax of 2%. How to find the original value of car?

As far as calculation goes I calculated it as below

2% of 9,00,000 is 18,000

Final value is 9,00,000-18,000=8,82,000

But actual value is different,

The calculation goes like 9,00,000/102% which comes to 9,18,000.

How this value comes? And why the percentage is 102%?

Ali Caglayan
  • 5,726
Ravi Dethiya
  • 11

1 Answers1

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You divide by the percentage+100%

So instead of subtracting 2% of your final value, you divide by 102%

900,000/1.02 = 882,352.941

No sure where you got your other number. As for why, it is because 900,000 is 102% of something (100% is the old value, plus your 2% tax), so to go backwards you divide by 102% (which is 1.02).

If you want another way to put it, then 900,000/102% = x/100% and solve for x

JPMC
  • 101