Question

The sales tax on the purchase of a futon is ​$24.45. If the tax rate is 5​%, find the purchase price of the futon

Answer 1

5% is the same as .05, so in this case, the sales tax is added by .05. Subtract .05 from 24.45 to get the original price of the futon. You'll get $24.40

Answer 2

The purchase price of the futon is $23.2275.

Explanation:

The sales price is how much you sold the product for, including the taxes, which is 5%.

The purchase price is how much you bought the futon for, that is, without the taxes.

The tax rate is 5% and you sell the futon for $24.45. So you paid for the futon 95% of 24.45.

So

24.45 - 1

x - 0.95

`x = 0.95*24.45 = 23.2275`

The purchase price of the futon is $23.2275.