Question

Andrea bought a new watch and paid 5% sales tax. the price she paid including tax was $126.00. what was the price of this watch before tax?

Answer 1

To find the price of the watch before tax, divide the final price by 1 plus the sales tax rate and then solve for x.

Step-by-step explanation:

To find the price of the watch before tax, you need to reverse the process of adding the sales tax to the final price. Since Andrea paid 5% sales tax, the price of the watch before tax can be found by dividing the final price by 1 plus the sales tax rate.

Let's assume the price of the watch before tax is x.

The equation that represents the problem is: x + 0.05x = $126.00

Simplifying the equation gives us: 1.05x = $126.00

To solve for x, divide both sides of the equation by 1.05

x = $126.00 ÷ 1.05 = $120.00

Therefore, the price of the watch before tax was $120.00.