Question

Problem page a theater group made appearances in two cities. The hotel charge before tax in the second city was $500 higher than in the first. The tax in the first city was 9%, and the tax in the second city was 6.5%. The total hotel tax paid for the two cities was $846.25. How much was the hotel charge in each city before tax?

Answer 1

The hotel charge in first city before tax was $5250 and in second city was $5750.

Let us consider the first hotel's charge to be $x.

Then the second hotel's charge is $(500+x).

9% tax on first hotel is = $0.09x

6.5% tax on second hotel is = $0.065(500+x) = $(32.5+0.065x)

So, total tax value = $(32.5+0.09x+0.065x) = $(32.5+0.155x)

The tax value is $846.25

So, (32.5+0.155x) = 846.25

⇒0.155x = 813.75

⇒x = 813.75/0.155 = 5250

So, first hotel's charge = $5250 and second hotel's charge = $(5250+500) = $5750