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

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

Grade:12

1 Answers

Anand Kumar Pandey
askIITians Faculty 5608 Points
2 months ago
Dear Student

The price includes VAT.
∴, 8% VAT means that if the price without VAT is₹100,
then price including VAT will be₹108.
When price including VAT is₹108, original price =₹100
When price including VAT is ₹5400, original price = ₹ (100/108 × 5400)
= ₹ 5000
∴ The price of the hair-dryer before the addition of VAT was₹5,000

Thanks

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