Question

The after-tax price of your shiny new car is $25,989.60. If a 4% sales tax was charged, what was the pretax price of the car?

Answer 1

After tax price: $25,989.60

4% sales tax was charged

what was the pretax price of the car?​

Afeter tax price of the car = Pretax price + Tax = Pretax price + 4% of pretax price

25,989.60 = PretaxPrice + PretaxPrice*4/100 = PretaxPrice + PretaxPrice*0.04 = PretaxPrice(1 + 0.04) =

25,989.60 = 1.04 * PretaxPrice

PretaxPrice = 25,989.60/(1.04) = 24,990.00

Answer:

Pretax Price = $24,990.00