Question 4566
Your equation is correct:


Let x = amount that you can spend for a total of $100.  Of course, you have to pay tax on x dollars.  What you spend plus tax equals $100.


x + .0255x = $100


You must have made an error in solving it.

x + .0255x = $100
1x + .0255x = $100
1.0255x = $100


Divide both sides by 1.0255:
{{{x = $100/1.0255}}}
x = $97.91


R^2 at SCC