Question

Ram purchased a phone for Rs $5400$ including VAT. Find the price before VAT was added . The VAT is $8\%$

• A. $5000$
• B. $500$
• C. $50000$
• D. $540$

Answer 1

Answer: (A)

$5000$

Let the price before VAT be $Rs.x$

Then Price after VAT = $\frac{108x}{100}$

Hence $x$ $=5400\times \left(\begin{array}{c}\frac{100}{108}\end{array}\right)=5000$