Question

Tina has $60 to spend on craft supplies. The tax rate is 8.25%. What is the maximum amount she can spend on craft supplies before taxes?

Answer 1

Answer: 55.42

Explanation:

Hi, to answer this question we have to write an inequality.

The amount spend on craft supplies taxes (x) plus the product of that amount (x) and the tax rate in decimal form (divided by 100) must be less or equal to the amount she can spend (60)

Mathematically speaking:

x+x(8.25/100)≤60

Solving for x

x+0.0825x ≤60

1.0825x ≤60

x≤60/1.0825

x ≤55.42

the maximum amount she can spend on craft supplies before taxes is 55.42.

Answer 2

$55.43

Explanation:

The maximum amount she can spend on craft supplies before taxes is such that when the tax rate is applied on (or multiplied with) the amount, the result is $60. As such, if the amount is x then x is such that

x + 8.25% * x = 60

x + 0,0825x = 60

1.0825x = 60

x = 55.427

This is the maximum amount that may be spent on craft supplies to ensure that the budget is not exceeded.