The Car's cost is 9,00,000 and it is inclusive of local tax of 2%. How to find the original value of car?
As far as calculation goes I calculated it as below
2% of 9,00,000 is 18,000
Final value is 9,00,000-18,000=8,82,000
But actual value is different,
The calculation goes like 9,00,000/102% which comes to 9,18,000.
How this value comes? And why the percentage is 102%?
You divide by the percentage+100%
So instead of subtracting 2% of your final value, you divide by 102%
900,000/1.02 = 882,352.941
No sure where you got your other number. As for why, it is because 900,000 is 102% of something (100% is the old value, plus your 2% tax), so to go backwards you divide by 102% (which is 1.02).
If you want another way to put it, then 900,000/102% = x/100% and solve for x