I purchased a hair dryer for Rs. 5400 including 8% VAT. find the price before VAT was added.
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
⇒x+8 of x=5400
So the price of the hair dryer was Rs. 5000 before including vat.