ii. TOTAL PRICE BEFORE TAX =NO. OF ITEMS * ITEM PRICE
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Answer:
How do I make an equation that calculates the price before tax?
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6 Answers

Rick A. Baartman
, Mathematical physicist
Answered 4 years ago · Author has 2.3K answers and 3.5M answer views
Adding 10% is like multiplying by 1.1. To go backwards, having the result and wanting before tax, you just divide by 1.1: $136.36.
If you subtract 10% instead, you get $135. The difference is because in this case you are taking 10% of the wrong number.
Or another way of putting it is 1.1 is not equal to 1/0.9.
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Alfred Wyzard
, Tutor/Writer at Nerd of Passion (2014-present)
Updated 4 years ago · Author has 167 answers and 287.6K answer views
This is a fairly straight-forward problem involving percentages, and the equation you're looking for is:
Pricebeforetax=Priceaftertax1+taxratedividedby100Pricebeforetax=Priceaftertax1+taxratedividedby100
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Eric Staugaard
, Analyst Assistant (2016-present)
Answered 4 years ago
Let’s go with your example. With tax = 10%, you can think of the total cost as 110% of the cost of the item. $150 = 100% cost of the item + 10% cost of the item. From there, you can calculate the price you want before tax as a ratio.
X/ 100 = $150/110
Simply solve for X and you’ve got the price before tax that will cost $150 after 10% tax is added.
You can simplify this equation as:
X = [(Total Price)*(100)]/(100+ tax)
where tax would be the percentage written out as a whole number i.e. 10% = 10,
15% = 15, 50% = 50 etc.
In this case, X = $136.363636 = $136.37
Let’s check to make sure adding another 10% adds up to $150
136.37 * 0.1 = $13.64
136.37 + 13.64 = $150.01 where the extra $0.01 comes from rounding errors when rounding the the hundredths place for cents.