Let's call the hotel charge in the first city as x. The tax in the first city was 3.5%, therefore, if we call the tax paid in the first city as t1, the tax paid is given by the following expression:
The hotel charge before tax in the second city was $500 higher than in the first and the tax in the second city was 5.5%, therefore, if we call the tax paid in the second city as t2, the tax paid is given by the following expression:
If we multiply the first equation by 0.055/0.035, we're going to have
Then, if we subtract this expression from the expression for the tax on the second city, we're going to have
The total hotel tax paid for the two cities was $365. This gives to us another equation
If we subtract this equation from the previous expression, we're going to have a new equation only for the tax of the first city.
Using this value on the first equation, we're able to determinate the value of x.
The hotel charge on the first city before tax was $3750.00.
Since the hotel charge before tax in the second city was $500 higher than in the first, we have
The hotel charge on the second city before tax was $4250.00.