How much should you charge for an item , if you want the total cost including the sales tax ( 7.5 % )  to be  $86 ?

Elementary Geometry For College Students, 7e
7th Edition
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Alexander, Daniel C.; Koeberlein, Geralyn M.
ChapterP: Preliminary Concepts
SectionP.CT: Test
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 How much should you charge for an item , if you want the total cost including the sales tax ( 7.5 % )  to be  $86 ?

Expert Solution
Step 1

Let's say we charge a price P.

Sales tax, S = 7.5%

Step 2

Total cost = P x (1 + S) = $ 86

Hence, P x (1 + 7.5%) = 86

Or, P x (1 + 7.5/100) = 86

Or, P x (1 + 0.075) = 86

Or, 1.075P = 86

Hence, P = 86/1.075 = $ 80.00

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