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I purchased a hairdryer for ₹ 5,400 including 8% VAT. Find the price before VAT was added.
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09/08/2021 11:37 am
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I purchased a hairdryer for ₹ 5,400 including 8% VAT. Find the price before VAT was added.
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09/08/2021 11:39 am
The price includes VAT
So, 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 ₹ 108, original price = ₹ 100
When price including VAT is ₹ 5400, original price
= (100/108 × 5400)
= Rs 5000
Therefore, the price of the hairdryer before the addition of VAT was Rs 5,000.
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