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

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

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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 hair-dryer before the addition of VAT was Rs 5,000.

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