Question

tax on the original price of a bicycle is charged at 20% of the original price. After tax has been included, Mathew pays $1080 for this bicycle. calculate the original price ​

Answer 1

Original price of bicycle = $864

Explanation:

Given:

Rate of tax = 20%

Price pay by Mathew = $1,080

Find:

Original price of bicycle

Computation:

Original price of bicycle = Price pay by Mathew[1 / (1-20%)]

Original price of bicycle = 1,080[1 / (1-20%)]

Original price of bicycle = 1,080[1 / (1-0.2)]

Original price of bicycle = 1,080[1 / (0.8)]

Original price of bicycle = 1,080[1.25]

Original price of bicycle = 1,080[1.25]

Original price of bicycle = $864