Question

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

Answer 1

selling price = 40500
let cost price be x
vat= 8% of x 
selling price = x + 8%of x 

40500 = x+8x/100
40500=x + 2x/25
40500 = (25x+2x )/25
27x = 40500*25
x =1012500/27
x = 37500

Hence the cost price of air conditioner is Rs. 37500.

Answer 2

original price = selling price(100-vat%)/100

=40500(100-8)/100
=40500*92/100
=405*92
multiply write the product here