Question

The sales tax on the purchase of a TV-DVD combination is $32.85. If the tax rate is 9%, how do you find the purchase price of the TV-DVD?

Answer 1

The purchase price was $30.14 rounded to the nearest penny.

Explanation:

The formula to find the total price of a product plus the sales tax is:

`T = p + s*p` where `T` is the total price, `p` is the price of the product and `s` is the sales tax percent. Substituting what is provided gives:

`32.85 = p + 9%p`

`32.85 = p + 0.09p`

`32.85 = 1.09p`

`32.85/1.09 = (1.09p)/1.09`

`p = 30.14` rounded to the nearest penny.