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

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

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

Answer»

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