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

Let the original price of the hair-dryer be ₹ 100
Given, VAT = 8% of 100 = ₹ 8

So, the Sale price = ₹ 100 + ₹ 8 = ₹ 108

If SP is ₹ 108 then original price =₹ 100

So, if SP is ₹ 1 then the original price = ₹ \(\frac { 100 }{ 108 }\)

Similarly, if SP is ₹ 5,400 then the original price = ₹ \(\frac { 100 }{ 108 } \times 5,400 = ₹ 5,000\)

Thus, the price of hair-dryer before the addition of VAT = ₹ 5000.