Question

The sales tax in the town where Amanda lives is 7% Amanda $35 in sales tax on a new studio what was the price of the stereo

Answer 1

I think the question is:

The sales tax where Amanda lives is 7%. When Amanda buys a new stereo, she pays $35 in sales tax. What is the price of the stereo?

So a simple equation can solve this.

sales tax = 0.07 * price
$35 = 0.07 * price
price = $35 / 0.07 = $500

Answer 2

So,

We know that $35 was the sales tax on Amanda's stereo.  Therefore, $35 is 7% of her stereo price.

A simple solution is to divide $35 by 7 to get 1%, and then multiply the dividend by 100 to get 100% of her stereo price.
$\frac{35}{7} = 5$
5 * 100 = 500

Amanda's stereo cost $500.