Question

Jeremy is buying a new car. The total cost, including tax, is $18275. If the tax rate is 7.5% , what is the sticker price of the car?

Answer 1

$17000

Explanation:

Given

`Total = 18275`

`Tax = 7.5\%`

Required

The original price

This is calculated using:

`Price(1 + Tax) = Total`

Make Price the subject

`Price = (Total)/((1 + Tax))`

So, we have:

`Price = (18275)/((1 + 7.5\%))`

`Price = (18275)/(1.075)`

`Price = 17000`