Two shops have the same radio-controlled car in
stock, one offers it at £140+VAT, the other advertises 1/3 off a standard
price of £270. Which shop offers the best deal?
Shop 1 - VAT on £140 is:
10%
+
5%
+
2.5%
=
17.5%
£14
+
£7
+
£3.50
=
£24.50
Notice how you halve the percentages and prices
each time to find 17.5%So
the total price is £140 + £24.50 =
£164.50
Shop 2 - 1/3 of £270 is:
£270
/
3
=
£90.00
So
the discount price is £270 - £90 =
£180.00
I would buy the car from shop 1.
Activity: Try this one yourself Two shops are selling the same TV.
Shop 1: 1/3 off £210.
Shop 2: £150 + VAT.
Shop 1 - 1/3
of £210 is:
£210
/
3
=
£
So
discount price is £210 - the answer above =
£
Shop 2 - VAT on £150 is:
10%
+
5%
+
2.5%
=
17.5%
£
+
£
+
£
=
£
So
the discounted sale price is £150 + VAT =
£
So the best
deal is.? - (click
the price tags for the answers)
