a watch was bought for Rs 2,700 including 8•/• VAT . find it's price before the VAT was added
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Answer:
Cost of watch including VAT = ₹ 2,700
Let the initial cost of the watch be ₹ 100
VAT = 8% of ₹ 100 = ₹ 8
Cost of watch including VAT = ₹ 100 + ₹ 8 = ₹ 108
If cost including VAT is ₹ 108, then its initial cost = ₹ 100
If cost including VAT is ₹ 1, then its initial cost = ₹ 100108
If cost including VAT is ₹ 2,700, then its initial cost = ₹ 100108 × 2700 = ₹ 2500
Hence, the required cost = ₹ 2,500
Step-by-step explanation:
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