5824 DIVIDE D BY .04%

Question

Miles paid $5,824, including 4% sales tax, for an out-of-state purchase of a car. In order to calculate the amount of sales tax he owes in his state, he must first determine the price of the car without sales tax. How much did the car cost before sales tax?

Answer 1

Let x be the cost of the car alone.

x + 0.04x = $5824

1.04x = $5824

x = $5824/1.04

x = $5600 = original price of the car