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

Question

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

Answer 1

5% = 0.05.  Let x = the cost of the hotel before tax is added:

 

x + 0.05x = $172.20

 

(1.05)x = $172.20     (Remember that x = 1x)

 

Solve for x.