Question

After a 5% tax,a DVD costs $21.How much did it cost before the 5% tax was added?

Answer 1

Explanation:

Percentage left after the tax percentage is

100%-5%=95%

95% is equal to 95/100 = 0.95

therefore, the cost after tax divided by the percentage that is left after the tax percentage

costs after tax is 21 dollars which is

21/0.95 = 22.1dollars

Answer 2

$20

Explanation:

You want to know the pre-tax price if the price with 5% tax added is $21.

Tax

The added tax is 5% of the original amount (x), so the amount with tax added is ...

$21 = x + 0.05x = 1.05x

$21/1.05 = x = $20 . . . . . divide by the coefficient of x

The cost before tax was added was $20.