He paid 12.5% in tax. The tax added $1437.50 to the price of the motorcycle. What was the price of the motorcycle, not including the tax?

Answer 1

The amount of tax paid can be calculated by multiplying the price by the tax percentage .

For this problem, the tax rate 12.5% can be written in decimal form as 0.125.

We can write the following equation and solve it to determine the price of the motorcycle:

Amount of tax = tax rate • price

$1437.50 = 0.125 • x

Divide both sides of the equation by 0.125 to find the price of the motorcycle:

1437.50 / 0.125 = 0.125 • x / 0.125

$11500 = x

The price of the motorcycle was $11500