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

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2 Answers

The price includes VAT.

Thus, 8% VAT means that if the price without VAT is Rs 100, then price including VAT will be Rs 108.

When price including VAT is Rs 108, original price = Rs 100

When price including VAT is Rs 5400, Original price = Rs (100/108 x 5400) = Rs 5000

Thus, the price of the hair-dryer before the addition of VAT was Rs 5,000.3

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Let price without VAT in rupees is `x`.
Then, Vat in rupees`= x**8/100 = (2x)/25`
so, `x+(2x)/25 = 5400=> 27x = 5400**25`
`x = 200*25 = 5000`
So, price before VAT is `5000` Rs.

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