Question

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A computer was purchased at a sale at a discount of 15%. If $688.50 was paid for it,
and this price includes 8% sales tax, then what was the original price without tax or
discount?

Answer 1

Based on the discount rate and the sales tax, the original price of the computer was $750.

What was the original price?

First find the price before tax. This can be found as:

= Computer price / (1 + tax)

= 688.50 / (1 + 8%)

= $637.50

Then find the price without the discount as:

= Price without tax / (1 - discount rate)

= 637.50 / (1 - 15%)

= $750

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