Question

A trip, including hotel and air, is priced at $324.34 after tax. If the tax rate is 14%, calculate the price before tax that will result in this tax-included amount.

Answer 1

$454.07 is the answer.

Answer 2

Let's consider the original price of the trip (the price without tax) to be
`p`. Tax is 14% of this price, or
`.14p`. The price of the trip including tax is equal to the price of the trip without tax + the tax of the trip. In an equation this would be
`p + .14p`, or
`1.14p`.

By the information in the problem, we can say
`1.14p = 324.24`. Since we are trying to find
`p`, we need to isolate
`p` in the left side of our equation, meaning we must remove the 1.14. To do this, we will divide both sides of the equation by 1.14:

`(1.14p)/(1.14) = (324.34)/(1.14)`

`\boxed{p = (324.34)/(1.14) \approx 284.51}`

The price of the trip without tax would be $284.51 after rounding to the nearest hundredth.