Question

The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. a) What is the amount of VAT paid by the hotel for one

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Answer to a math question The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. a) What is the amount of VAT paid by the hotel for one

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Neal
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101 Answers


Solution:
To find the amount of VAT paid by the hotel for one night in the suite, we first need to calculate the base price without VAT.

Let the base price be represented by x euros.

Since the VAT in Italy is 25%, we can express the VAT amount as 25% of the base price. This can be written as:

VAT amount = 0.25 * x

To find the base price, we can use the fact that the total price of the suite including VAT is 1896 euros. This can be expressed as:

Total price = base price + VAT amount
1896 = x + 0.25 * x
1896 = 1.25 * x

Now, we can solve for x by dividing both sides of the equation by 1.25:

x = 1896 / 1.25
x = 1516.8 euros

Therefore, the base price without VAT is 1516.8 euros.

To find the amount of VAT paid by the hotel, we need to substitute the base price into the VAT amount equation:

VAT amount = 0.25 * 1516.8
VAT amount = 379.2 euros

Therefore, the amount of VAT paid by the hotel for one night in the suite is 379.2 euros.

Answer: The amount of VAT paid by the hotel for one night in the suite is 379.2 euros.


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