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A watch was bought for 2,700 including 8% VAT. Find its price before the VAT was added.

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Answer:

Let's assume that the price before adding the VAT is x.

We know that the VAT rate is 8%, which means that the VAT amount is 8% of x, or 0.08x.

The total price including VAT is the sum of the price before VAT and the VAT amount, so we can write:

Total price = price before VAT + VAT amount

or

2,700 = x + 0.08x

Simplifying this equation, we can combine like terms on the right-hand side to get:

2,700 = 1.08x

To solve for x, we need to isolate it on one side of the equation. We can do this by dividing both sides of the equation by 1.08:

x = 2,700 / 1.08

x = 2,500

Therefore, the price before VAT was added is 2,500.

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