Question

A hotel charges an 8% tax, as required by law to pay the city. If Mr. and Mrs. Lafferty paid $167.40, what was their bill before the tax was added to it?

Answer 1

Let x is the original bill
x + 0.08x = 167.4
1.8x = 167.4
x = 167.4 / 1.8
x = 155

answer: $155 was their bill before the tax was added to it

Answer 2

155$ is how much they paid before tax
155 * 1.08 = 167.4
1.08 = 108%
or
155 * 0.08 = 12.4
12.4 + 155 = 167.4
0.08 = 8%

your answer is 155