Question

Find the original price given the total amount and tax rate.Total price: $128,500Tax rate: 5.5%Enter the correct answer in the box.

Answer 1

Let p be the original price, T be the total amount and r the tax rate. From this, we have:

T = (r+1)*p

(0.055+1)p = 128500

1.055p = 128500

p = 128500/1.055 = $121,800.95