Question

I purchased a hair dryer for $Rs.5400$ including $8\%$ VAT. find the price before VAT was added.

Answer 1

Let the original price be $x$.

VAT $=8\%$ of original price

Now, Cost price $=$ VAT $+$ Original price

It is given that, CP of hair dryer after added VAT $=Rs.5400$
$\Rightarrow x+8$ of $x=5400$

$\Rightarrow x+\frac{8x}{100}=5400$

$\Rightarrow \frac{108x}{100}=5400$

$\Rightarrow x=5400\times \frac{100}{108}$

$\Rightarrow x=300\times \frac{100}{6}$

$\Rightarrow x=50\times 100$

$\Rightarrow x=5000$
So the price of the hair dryer was $Rs.5000$ before including vat.​​​​​​