Question

A man realizes he lost the detailed receipt from the store and only has the credit card receipt with the after-tax total. If the after-tax total was $1,413.10, and the tax rate in the area is 8.7%, what was the pre-tax subtotal?

Answer 1

The pre-tax amount was $1300.

Explanation:

Given that:

After-tax total = $1413.10

Tax rate in the area = 8.7%

The pre-tax price would be 100% and this tax rate is an addition.

Total percent = (100+8.7)% = 108.7%

Let,

x be the pre-tax amount.

108.7% of x = 1413.10

`(108.7)/(100)x=1413.10\\1.087x = 1413.10`

Dividing both sides by 1.087

`(1.087x)/(1.087)=(1413.10)/(1.087)\\x= 1300`

Hence,

The pre-tax amount was $1300.