Question

Martha paid $42.40 for her sister's birthday present. This included 6% sales tax. What was the cost of the gift before tax?

Answer 1

Let us take the earlier price be of the present be x .

Then the price after tax = x + 6% of x .= x + x / 100 = 100x + 6x /100 = 106x/100.

But , it is given $42.40.

So,

ATQ, 106x / 100 =$42.40.

or 106x = $(42.40 × 100)

or 106x = $4240.

or x = $(4240/106)

Therefore x = $40.

Therefore the earlier price of the present was $40.