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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: 7.00

2% discount: 0.14
After discount: 6.86

17.5% VAT: 1.20
After VAT: 8.06

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