Question

The price of a necklace, including sales tax, is $581.21. If the sales tax rate is 9.25%, find the price of the necklace, before sales tax is added. Round your answer to the nearest penny.

Answer 1

The original price of the necklace before sales tax is found by dividing the total price $581.21 by 1.0925. This calculation yields an answer of approximately $531.77, which represents the original price excluding the 9.25% sales tax.

Step-by-step explanation:

To find the price of the necklace before sales tax, we need to know that the total price ($581.21) includes the original price plus sales tax. With the sales tax rate of 9.25%, we can set up an equation. Let the original price be represented as 'P'. The total cost is the original price plus the sales tax, which can be written as P + (P × 0.0925) = $581.21. To solve for P, we first combine like terms:

P × (1 + 0.0925) = $581.21

P × 1.0925 = $581.21

Now, divide both sides of the equation by 1.0925 to isolate P:

P = $581.21 / 1.0925

P ≈ $531.77

Therefore, the original price of the necklace, before sales tax was added, is approximately $531.77, rounded to the nearest penny.