Question

What is the original price of an item cost if the tax is 9.25% and the discount is 25% and the new price after discount and tax is $62.28?

Answer 1

Answer: $ 91.50.

Explanation:

Let x be the original price.

Since discount is applied before tax.

New price = (Original price - Discount)-Tax rate (Original price - Discount)

, where Discount = Discount rate x Original price.

Substituting values, we get

`62.28=(x-0.25x)-0.0925(x-0.25x)`

`62.28=(0.75x)-0.0925(0.75x)`

`62.28=0.75x-0.069375x`

`62.28=0.680625x`

`x=(62.28)/(0.680625)`

`x=91.50`

Hence, the original price was $ 91.50.