I purchased a hair-dryer for Rs 5,400 including $8 %$ VAT. Find the price before VAT was added. [2 MARKS]

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Solution

Concept : 1 Mark
Calculation : 1 Mark

Original price without VAT
$= \frac{100}{100 + V A T} \times F i n a l P r i c e$

Original price without VAT
$= \frac{100}{108} \times 5400 = 5000$

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