Question

A new television set was recently purchased for the common room in a Residence Hall for $530.00 including tax. If the tax rate is 6%, find the price of the television set before taxes.

a. $500.00
b. $498.11
c. $509.43
d. $518.87

Answer 1

The correct answer is option a. $500.00.The price of the television set before taxes, with a tax rate of 6% added to reach a total cost of $530.00, is $500.00.

Step-by-step explanation:

The correct answer is option a. $500.00. To find the price of the television set before taxes, you need to subtract the tax from the total amount paid. Knowing that the total cost, including tax, is $530.00 and the tax rate is 6%, you can calculate the original price (let's call it P) by using the equation P + 0.06P = $530.00, which simplifies to 1.06P = $530.00. Dividing both sides by 1.06 gives P = $500.00. Therefore, the price of the television set before taxes was $500.00.

To find the price of the television set before taxes, we need to divide the total price including tax by 1 plus the tax rate. In this case, the tax rate is 6%, so we divide $530 by 1.06:

$530 / 1.06 = $500.00

Therefore, the price of the television set before taxes is $500.00.