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

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Solution

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
When price including VAT is 108, then original price = Rs 100
When price including VAT is Rs 1, then orginal price =100108
When price including VAT is Rs 5400, then original price =100108×5400=Rs.5000

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