Question

Monica paid sales tax of $2.40 when she bought a new bike helmet. If the sales tax rate was 6%, how much did the store charge for the bike helmet before tax?

Answer 1

Answer: $40

Explanation:

The tax rate is 6% on the price of the good bought.

This means that $2.40 is 6% of the price of the helmet before taxes.

Assuming the before tax price is x, the price of the helmet is:

2.40 = x * 6%

x = 2.40 / 6%

x = $40

$40 is the before tax cost.