Question

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

Answer 1

Original price of the item before VAT is considered = x

As per the question, the price is inclusive of VAT

x + 8% of x = 5400

`x+(8x)/100` = 5400

= `(108x)/100` = 5400

`x = (5400×100)/108`

x = 5000

Thus, the price of the hair dryer before the addition of VAT was Rs 5,000.