10 I purchased a hair-dryer for Rs 5,400 including 8% VAT. Find the price before VAT was added. 

 

Answers (1)

Given,

VAT = 8%

Let the original price be Rs. 100

   Original price +  VAT  = Rs. 100 + Rs. \left ( 8\%\, of\, 100 \right )

   Original price +  VAT  = Rs. 100 + Rs. 8 = Rs. 108

\therefore If the price after VAT is Rs.5400, then the price before VAT is  Rs. \frac{100}{108}\times5400 = Rs. 5000

\therefore The price before VAT was added is Rs. 5000.

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