# Robson ▸ Little Red Book ▸ Prices

## Chapter 1 - Question 2

Given the price, in pounds, of an item, any discount allowed and the applicable VAT rate, find and output the cost of an item.

### Solution 1

`<?` `    // the current uk vat rate` `    define(VAT_RATE, 17.5);` `    ` `    // the price in pounds of an item` `    // produces a result between 1 and 10` `    \$price = mt_rand(1, 20);` `    // the discount for this item (percent)` `    // produces a result between 1 and 20` `    \$discount = mt_rand(1, 20);` `    ` `    // show the original price` `    // number format is used to make sure the price has two decimal places` `    echo . number_format(\$price, 2) . '<br /> <br />';` `    ` `    // work out the discount` `    \$item_discount = \$price * (\$discount / 100);` `    // the cost would be the original price minus the discount` `    \$price -= \$item_discount;` `    // show the discount` `    echo \$discount . . number_format(\$item_discount, 2) . '<br />';` `    // show the price after discount    ` `    echo . number_format(\$price, 2) . '<br /> <br />';` `    ` `    // work out the vat` `    \$item_vat = \$price * (VAT_RATE / 100);` `    // plus vat` `    \$price += \$item_vat;` `    // show the vat` `    echo VAT_RATE . . number_format(\$item_vat, 2) . '<br />';` `    // show the price after vat has been added` `    echo . number_format(\$price, 2);` `?>`

Which produces:

Original price: £13.00

19% discount: £2.47
After discount: £10.53

17.5% VAT: £1.84
After VAT: £12.37

## Log

• Jan 31, 2005 - Added solution 1.
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