The maximum amount she can spend on craft supplies before taxes is $47.05
What is the maximum amount she can spend on craft supplies before taxes?
From the question, we have the following parameters that can be used in our computation:
Amount = $50
Tax rate = 6.25%
Using the above as a guide, we have the following:
Amount = Amount before tax * (1 + Tax rate)
Substitute the known values into the equation
50 = Amount before tax * (1 + 6.25%)
50 = Amount before tax * (1.0625)
Divide both sides by 1.0625
Amount before tax = 47.05
Hence, the maximum amount is $47.05