A hair dryer is purchased for Rs 5,400 including 8 per cent VAT. What was the price before VAT?

1. The paid amount is 108 per cent of the pre-tax price. 2. Pre-tax price = 5400 x (100/108). 3. 5400 / 108 = 50, so the price is 50 x 100 = Rs 5,000. 4. Check: 8 per cent of 5000 = 400, and 5000 + 400 = 5400. 5. Subtracting 8 per cent of 5,400 gives Rs 4,968, the trap. _Source: syllabus Maths Ch7 'Comparing Quantities', Exercise 7.2 Q4_