Question

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

Answer 1

C.P = Rs 5,400 and Rate of VAT = 8%
Let C.P without VAT is Rs 100, then price including VAT = 100+8=Rs108
$\therefore$ When price including VAT is 108, then original price = Rs 100
$\therefore$ When price including VAT is Rs 1, then orginal price $=\frac{100}{108}$
$\therefore$ When price including VAT is Rs 5400, then original price =$\frac{100}{108}\times 5400=Rs.5000$