Problema Solution
I need to solve the following problem. If the total sales price = $20 and the sales tax rate is 9.25%. How do I calculate the price before sales tax?
Answer provided by our tutors
total sales price = (the price before sales tax) + (the price before sales tax*sales tax rate)
total sales price = (the price before sales tax)*(1 + sales tax rate)
the price before sales tax = (total sales price)/(1 + sales tax rate)
the price before sales tax = 20 / (1 + 0.0925)
the price before sales tax = $18.31 approximately