The total cost of a car including tax at 8.6 percent is $12,500. What was the cost before tax?
What will be an ideal response?
Let t = tax
Let c = cost before tax
c = $12,500 — t
t = (8.6 / 100) c
Substitute second equation into first to eliminate t: c = 12500 — (8.6 / 100)c
c + 0.086c = 12500
c * 1.086 = 12500
c = 12500 / 1.086
c = $11,510.13
Check:
t = (8.6 / 100) * 11510.13 t = $989.87
total cost = 989.97 + 11510.13 = $12500 (Cost after tax checks)
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