Question

Romeo paid $380.75 in car repairs. The sales tax rate is 7.5%. Which of the following is a reasonable estimate for the total Romeo paid to repair his car?

Answer 1

$354.19

Explanation:

The total payment was $380.75 plus 7.5% of that, which can be represented by

(1 + 0.075)r = $380.75, where r is the repair bill before taxes. Then:

1.075r = $380.75, and r = $354.19 (rounded to the nearest cent)

Answer 2

the correct answer is actually $410.00