Question

You just paid $35,640 for a car, including sales tax. the sales tax rate is 8%. what is the pre-tax price of the car? a. $35,640 b. $32,789 c. $33,000 d. $35,355

Answer 1

To find the pre-tax price of a car for which you paid $35,640 including an 8% sales tax, divide the total cost by 1.08. The pre-tax price of the car is $33,000.

Step-by-step explanation:

The question asks for the pre-tax price of a car, given that the total amount paid, including sales tax, is $35,640 and the sales tax rate is 8%. The sales tax can be calculated by converting the percentage to a decimal and multiplicand that by the total cost.

Let's denote the pre-tax price of the car as P. According to the problem, P plus 8% of P will equal the total amount paid. To find P, we use the following equation:
P + 0.08P = $35,640

Combining like terms, we get:
1.08P = $35,640
P = $35,640 / 1.08
P = $33,000

Therefore, the pre-tax price of the car (Option C) is $33,000.