Answer: The amount of VAT on a purchase of an item is $57.5.
Step-by-step explanation:
Since we have given that
Cost of item = $250
we need to find the amount of VAT.
Rate of VAT = 23%
So, amount of VAT would be
[tex]\dfrac{23}{100}\times 250\\\\=0.23\times 250\\\\=\$57.5[/tex]
Hence, The amount of VAT on a purchase of an item is $57.5.
