Question

Including a 7% sales tax, a hotel charges $200.02 per night. Find the hotel's nightly rate before tax is included. Round the solution to the nearest cent.

Answer 1

Let x be the nightly rate before tax.

We know that the total cost including tax is $200.02, which is 100% of the cost before tax plus 7% sales tax:

x + 0.07x = 200.02

Combining like terms on the left-hand side:

1.07x = 200.02

Dividing both sides by 1.07:

x = 186.91

Therefore, the nightly rate before tax is $186.91, rounded to the nearest cent.