I purchased a hair-dryer for Rs 5,400 including 8% VAT. Find the price before VAT was added.
The price includes VAT.
Thus, 8% VAT means that if the price without VAT is Rs 100, then price including VAT will be Rs 108.
When price including VAT is Rs 108, original price = Rs 100
When price including VAT is Rs 5400, original price = Rs `(100/108 xx 5400)`
Thus, the price of the hair-dryer before the addition of VAT was Rs 5,000.
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