Question

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

Answer 1

₹ 37500

Explanation:

Let the price before VAT be ₹x.

`\therefore \: x + 8 \% \: of \: x = 40500 \\ \therefore \: x +0.08x = 40500 \\ \therefore \: 1.08x = 40500 \\ \therefore \: x = (40500)/(1.08) \\ \huge \red{ \boxed{ \therefore \: x = Rs. \: 37,500}}`

Hence the price before including VAT of air conditioner was ₹ 37,500.