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

5000

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500

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50000

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540

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Solution

The correct option is C $5000$
Let the price before VAT be $R s . x$

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

Hence $x$ $= 5400 \times (\begin{matrix} \frac{100}{108} \end{matrix}) = 5000$

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