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Question

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

A
Rs.5200
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B
Rs.4800
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C
Rs.5300
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D
Rs.5000
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Solution

The correct option is D Rs.5000
Let the price of the hairdryer before VAT be Rs x.

So, 1.08×x=5400

x=54001.08= Rs 5000

So, the cost of the hairdryer before VAT is Rs 5000

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