Question

Caleb brought groceries and paid $1.60 in sales tax. The sales tax rate is 2.5%. What was the price of caleb’s groceries, before tax?

Answer 1

$1.64

Explanation:

We need to find the before tax price so let that be x

100-2.5% = 97.5% (since this is the reduction before the sale)

Turn this percentage into a decimal so 0.975

To find x we must remember this price multiples 0.975 to give us $1.60

x * 0.975 = 1.60

x = 1.60 / 0.975

x = 1.64 (2dp)

Answer 2

$64

Explanation:

We can set up a percentage proportion to find the value Caleb's groceries before tax.

`(1.60)/(x) = (2.5)/(100)`

We can cross multiply to find the value of x.

`100\cdot1.60=160\\\\160/2.5=64`

So the original cost before tax was $64.

Hope this helped!