Question

Including a 5% sales tax, an inn charges $172.20 per night. Find the inn's nightly cost before tax is added.

Answer 1

The cost of the room before the tax is X.

To get the total cost they multiply the cost of the room x by 1 + sales tax rate.

Total cost would be x(1.05)

To find x divide total cost by 1.05:

Cost of room before tax: 172.20/1.05

Cost: $164