Question

Sales tax at a car dealership is 7%. If the Sales Tax on a new car is $1400, what was the original price of the car before tax?

Answer 1

The original price of the new car is $20,000

Explanation:

In this question, we are asked to calculate the original price of a car before tax given the value of the sales tax and the percentage of the original price that is the sales tax.

Since we do not know the original price, let’s call it x

Thus mathematically:

7% of x = $1,400

7/100 * x = 1400

7x = 100 * 1400

x = (100 * 1400)/7

x = 140000/7

x = $20,000