# 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: £9.00

3% discount: £0.27
After discount: £8.73

17.5% VAT: £1.53
After VAT: £10.26

## Log

• Jan 31, 2005 - Added solution 1.
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