We are told that the maximum amount to spend is $80 and that there is a 7.5% sales tax. If N is the amount we are going to spend then we need to have into account that we need to add the 7.5% of N and that should be at least equal to $80.
Now we need to solve for N, to do that we add like terms:
Now we multiply both sides by 100:
Now we divide by 107.5:
Solving the operations:
Therefore, the maximum amount to spend is $74