Question

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

Answer 1

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 \(Rs\) \(5400\)
\(original \;price\) = \(Rs\) \(\bigg(\frac{100}{108} × 5400\bigg)\)
= \(5000\)

Thus, the price of the hair-dryer before the addition of VAT was \(Rs\; 5,000\).