posted by Michelle .
In a state with a 7% sales tax, how much tax must be paid on a shirt that sells for $16?
16 * 0.07 = ?
Almost, but the tax is not based on the final price. 16*.07 = 1.12
However, if p is the original price,
1.07p = 16.00
p = 16.00/1.07 = 14.95
16.00 - 14.05 = 1.05
So, the 7% tax on a 14.95 shirt is 1.05, making the selling price 16.00
On the other hand, you are probably right, since the price on the shirt is taxed at the register. I misinterpreted the question.