Question

Jeremy is buying a new car. The total cost, including tax, is $18275. If the tax rate is 7.5% , what is the sticker price of the car?

Answer 1

Answer:

$17000

Step-by-step explanation:

Given

$Total = 18275$

$Tax = 7.5\%$

Required

The original price

This is calculated using:

$Price(1 + Tax) = Total$

Make Price the subject

$Price = \frac{Total}{(1 + Tax)}$

So, we have:

$Price = \frac{18275}{(1 + 7.5\%)}$

$Price = \frac{18275}{1.075}$

$Price = 17000$