The value added tax of imported electronic is 20%of its cost price. If the price of an electric iron box is 1200kwacha calculate the price of the iron box before value added tax is added 

To calculate the price of the iron box before the Value Added Tax (VAT) is added, follow these steps:

1. **Let the cost price before VAT be \( x \)**.
2. **The VAT rate is 20%** of the cost price, so the VAT amount will be \( 0.2x \).
3. The total price of the iron box after adding VAT is given as 1200 Kwacha.

Thus, the equation is:

\[
x + 0.2x = 1200
\]

4. Combine like terms:

\[
1.2x = 1200
\]

5. Solve for \( x \):

\[
x = \frac{1200}{1.2} = 1000
\]

So, the price of the iron box before VAT is **1000 Kwacha**.

Would you like more details or have any questions?

### Related Questions:
1. How do you calculate VAT on multiple items?
2. What is the total VAT paid if you purchase several items?
3. How does VAT affect pricing for other electronics?
4. Can VAT rates change, and how does that affect the price?
5. How do you calculate the price after applying a discount and VAT?

#### Tip:
When calculating taxes like VAT, always ensure you first determine the base price before taxes to avoid confusion.

The value added tax of imported electronic is 20% of its cost price. If the price of an electric iron box is 1200 kwacha calculate the price of the iron box before value added tax is added.

Learn how to calculate the original price of an electric iron box before a 20% Value Added Tax (VAT) is applied. This problem covers key concepts such as algebra and percentage calculations, providing a step-by-step solution to find the cost price from a total price of 1200 Kwacha. Ideal for students in Grades 6-8.

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