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

C.P. = Rs.5,400 and Rate of VAT = 8%

Let C.P. without VAT is Rs. 100, then price including VAT = 100 + 8 = Rs.108

∵ When price including VAT is Rs.108, then original price = Rs.100

∴ When price including VAT is Rs.1, then original price =

∴ When price including VAT is Rs.5400, then original price = = Rs.5000

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