A diamond necklace was purchased for $2681.25. This price already includes a sales tax of 7.25%. Find the price of the necklace before the tax was added. How much was the sales tax on the necklace?

Answer 1

Sabrina

I model this using 2700 and 7.5 %

If price before tax is p

tax is 7.5% of p. 7.5% = 7.5 / 100 = 0.075

so tax is 0.075 p

So total price with tax = p + 0.075p = 1p + 0.075 p = p (1 + 0.0075) = 1.0075 p

So 1.0075 p = 2700

p = 2700 / 1.0075 = $ 2679.90 to the nearest cent

Sales tax = 2700 - 2679.90 = $ 20.10

Now follow my model with your numbers

Mike

Answer 2

original price = P

(1+.0725)P = $2681.25

P=2681.25/1.0725= $2500