Question

The sales tax rate is 5%. If the sales tax on a 10-speed bicycle is $7, what is the purchase price?

Answer 1

Given,

Sales tax rate=5%

Sales tax on bike=$7

Now, we will find purchase price.

Let purchase price = x

We know given sales tax = 5% of x

Total price = purchase price + sales tax

So,

Sales tax = 5% of x

Now, to find x

$\begin{gathered} 7=\text{ 5\% of x} \\ 7=\frac{5}{100}\text{ of x} \\ x\text{ = }\frac{7\times100}{5} \\ x=140 \end{gathered}$

So, purchase price is $140.

Total price of bicycle,

Total price = purchase price + sales tax

total price = 140 + 7

=147

Hence, 147 is the required answer.