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

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