Question

How much will you need to save to purchase a $100 item in a state with a 6.5% tax rate?

Answer 1

$106.50

Explanation:

Take 100 and multiply it by 6.5%. This will give us 6.5, the amount of tax to pay. Then add 100 to 6.5 giving you the total of $106.50.

Answer 2

$93.89

Explanation:

Work backwards -> 1.065x=100

x=$93.89