Question

The sales tax rate is 8%. If Jim bought a new Buick and paid a sales tax of $1,930, what was the cost of the Buick before the tax?

Answer 1

Let the price of the car = x.

8% of the price of the car is $1930.

We now translate the sentence into an equation using x as the unknown amount. Then we solve the equation to find x, the price of the car before tax.

8% * x = 1930

0.08x = 1930

x = 1930/0.08

x = 24,125

Answer: The price of the car before tax is $24,125.