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A product is sold for ₦1,500 exclusive of VAT. If the VAT rate is 10%, what is the total amount a customer pays?
  • a)
    ₦1,550
  • b)
    ₦1,600
  • c)
    ₦1,650
  • d)
    ₦1,750
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
A product is sold for 1,500 exclusive of VAT. If the VAT rate is 10%, ...
The VAT amount is calculated as a percentage of the selling price.
VAT = 10% of ₦1,500
= (10/100) * ₦1,500
= ₦150.
Therefore, the total amount a customer pays is
₦1,500 + ₦150
= ₦1,650.
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