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44 votes
44 votes
The sales tax rate is 8%. If Tony paid sales tax of $1,920 for a new car, what was the price of the car?

User Marco Pantaleoni
by
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1 Answer

18 votes
18 votes

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

sales tax rate = 8% = 0.08

sales tax paid = $1,920

car price = ?

Step 02:

Option 1:

8% ---------- $1920

100% -------- x

x = car price = (100 * 1920) / 8 = 24000

Option 2:

car price = sales tax paid / sales tax rate

car price = 1920 / 0.08 = 24000

The answer is:

The price of the car was $24,000

User Weed Cookie
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