document.write( "Question 635823: Please help me solve this equation. Thank you.\r
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document.write( "Deducting Sales Tax... A tax -exmpt charity recieved a bill of $145.90 for a sump pump. The bill incorrectly included sales tax of 5%. How much does the charity owe?\r
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document.write( "I know the correct way to think of the problem is... The origional price, a variable, + 5% of the origional price equals $ 145.90. I've came up with this so far...\r
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document.write( "5% is converted to 0.05\r
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document.write( "0.05 * 145.90 = 7.295\r
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document.write( "145.90 - 0.05 = 145.85\r
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document.write( "so would the answer be $ 145.85 ????\r
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Algebra.Com's Answer #400596 by KMST(5328)![]() ![]() You can put this solution on YOUR website! No, that's not right. Here is why. \n" ); document.write( "The calculation \n" ); document.write( "0.05 * 145.90 = 7.295 \n" ); document.write( "gives you 5% of 145.90. \n" ); document.write( "That is 5% of the total bill, which included tax. \n" ); document.write( "However, the sales tax was 5% of the unknown amount that you have to find (the price of the sump pump). \n" ); document.write( "Let the price of the sump pump be $ \n" ); document.write( "The tax would be $ \n" ); document.write( "For a customer that must pay sales tax, the bill (in $) would be \n" ); document.write( " \n" ); document.write( "That is 105% of the price, 100% of the price for the merchant, and $5% of the price (the sales tax) for the government. \n" ); document.write( "That is how the merchant calculated (incorrectly) the bill for the tax-exempt charity. \n" ); document.write( " \n" ); document.write( "We must solve that equation for \n" ); document.write( "Dividing both sides of the equal sign by \n" ); document.write( " \n" ); document.write( "The price of the pump was $138.95, and that is all that the charity should pay. \n" ); document.write( "The 5% tax on $138.95 calculates as \n" ); document.write( "0.05*($138.95)=$6.9475, which rounds to $6.95. \n" ); document.write( "The merchant added $138.95+$6.95=$145.90 to come up with the incorrect bill. \n" ); document.write( " |