Question

I purchased a hair-dryer for $5,400 including 8% VAT. Find the price before VAT was added. Show me in step by step. I am telling you, You will not able to solve this question. Only a genius can do solve this question.

Answer 1

Let the price before VAT be x

VAT added = 8% of x= (8/100)*x = 0.08x

Total price = x + 0.08x = 1.08 x

1.08x = $5400
x = 5400/1.08 = $5000

Price before VAT = $5000
VAT added = 8% of $5000 = $400
Total Price after VAT = $5000 + $400 = $5400

Answer 2

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Question

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

Answer : 5000

Solution

Price after 8% VAT = 5400

If the initial price=x

VAT = 8%

Final price = $x+ \frac{8 x}{100}$

$= \: x \: ( \frac{108}{100} )$

Given:- $\frac{108 x}{100} = 5400$

⇒ x =$\frac{ 5400×100}{108} = 5000$

=5000

∴ The price of hair dryer before VAT was added =5000Rs.

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