Question

renu purchased an air conditioner for rs 40500 including 8% VAT. what was the price before including VAT?

Answer 1

original price of an air conditioner = Rs x
purchased price = p = Rs 40500

vat = 8%

x = (p*100)/(100+vat%)
 = 40500*100/(100+8)

= (40500*100)/108
= Rs 37500

original price =x = Rs 37500

Answer 2

let original price be x Rs
then the selling price will be
40500= x+(8/100 × x)
40500= x+ 2x/25
40500×25 = 27x
x = 40500 × 25/27
x = 37500

Hence price before including VAT will be Rs.37500

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