Question

I purchase a hair-dryer for $Rs5,400$ including $8\%$ $VAT$. Find the price before $VAT$ was added.

Answer 1

Cost of hair dryer including VAT $=Rs.5400$

VAT $=8\%$

Therefore,

Cost of hair dryer before adding VAT $=5400-\frac{8}{100}\times 5400$

$=5400-432$

$=Rs.4968$

Hence the price of hairdryer before adding VAT is $Rs.4968$.