Question

A hotel manager found that his gross receipts for the​ day, including a ​5% sales​ tax, were ​$1645.35. Find the amount of sales tax collected.

Answer 1

The amount of sales tax collected is $78.35

Explanation:

Percentages

The gross receipts for the day were $1645.35, including a 5% sales tax.

If a percentage is already included (added) to a certain quantity, then it's not the original quantity or 100%.

The problem states that the gross receipts already include a 5% sales tax, thus the receipts are 100+5=105% of the net sales.

This means the net sales were $1645.35 / 105 * 100 = $1567

Subtracting $$1645.35 - $1567 = $78.35 we get the amount of sales tax.

The amount of sales tax collected is $78.35