question_answer 16)

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

Answer:

                \[\because \] When price including VAT is Rs 108, original price = Rs 100        \[\therefore \] When price including VAT is Rs 5,400,                              original price \[\frac{100}{108}\times 5,400\] = Rs 5,000           Hence, the price before VAT was added is Rs 5,000.