Cost of one 10ml bottle before tax: £2 New tax per bottle: £2.20 + VAT VAT at 20% on £2.20: 0.20 × £2.20 = £0.44 Total tax per bottle: £2.20 + £0.44 = £2.64 Cost per bottle after tax: £2 + £2.64 = £4.64 Cost for 5 bottles: 5 × £4.64 = £23.20
Final answer: The 5 bottles will cost £23.20 when the new tax is applied.
Let's calculate the percentage increase from £10 to £23.20:
Initial cost: £10 New cost: £23.20 Increase in price: £23.20 - £10 = £13.20 Percentage increase: (Increase / Original price) × 100