Question

A new television set was recently purchased for a common room in a residence hall for $408.00 including tax. If the tax rate is 2%, find the price of the television set before taxes

Answer 1

$400

Explanation:

To solve this, we need to understand how one reaches the final price. The general formula for final price (with tax) is:

t(c) = p x (1+t)

t(c) is total cost

p is price

t is tax rate as a decimal

To find p, we need to create a new formula. Since we have the total cost ($408) and the tax rate (2% or .02), we can divide the total cost by 1 + the tax rate to solve for the price:

t(c) / (1+t) = p

408 / (1+.02) = $400

I hope this helps!

-TheBusinessMan