Question

Sales tax on a futon is $23.95 with a tax rate of 5%, what is the purchase price of the futon?

Answer 1

Let's use an equation.

X= original price

To find the tax, the original price is multiplied by .05
This means:

.05x = 23.95
Simply solve for x

.05x/.05 = 23.95/.05
x = $479
Check
.05 • 479= 23.95
23.95= 23.95✔️

ANSWER: the original cost is $479

Answer 2

The purchase price of the futon is equal to $23.95 *(.05) + $23.95

So, 23.95 * 0.05= 1.1975

1.1975 + + 23.95= $25.1475 or $25.15