Julia wants to buy a new computer. 20% VAT is added to the price of the computer so that she now has to pay £300. What was the original price of the computer without VAT.

First the most important aspect to recognize is that the original price of the computer is 100%, the additional 20% of VAT makes the total value of the computer change to 120%. Therefore, the 120% = £300. The next step can be done in different ways. Personally, the best way is to find 10% of the price and then multiply it by 10 to find the original price of 100%. Therefore, 10% = (120% divided by 12). Thus, we divide the £300 by 12 to find 10%. Through a method of long division we find that 10% is equal to £25. We must then multiply the £25 by 10 to find the original 100%. 25 x 10 = £250. The price before the 20% VAT was £250.