Question

Shelly paid $8.84 for a pizza. This amount includes a sales tax of 4%. What was the cost of the pizza before tax?

Answer 1

$8.50

Explanation:

let the price before tax be $x

given that the sales tax rate is 4%, hence the amount she paid in taxes

= 4% of x

= (4/100)x

= 0.04x

We can now build an equation for what she paid:

Amount Paid = price before tax + amount paid in taxes

8.84 = x + 0.04x

8.84 = 1.04x (divide both sides by 1.04 and rearranging)

x = 8.84 / 1.04

x = $8.50

Answer 2

$8.50

Explanation:

let the price before tax be $x

given that the sales tax rate is 4%, hence the amount she paid in taxes

= 4% of x

= (4/100)x

= 0.04x

We can now build an equation for what she paid:

Amount Paid = price before tax + amount paid in taxes

8.84 = x + 0.04x

8.84 = 1.04x (divide both sides by 1.04 and rearranging)

x = 8.84 / 1.04

x = $8.50