You just paid $42.40 including tax, for your cousin's birthday present. Sales tax is 6%. What is the retail price of the gift?
$40?
1.06p = 42.40
To determine the retail price of the gift, we first need to calculate the amount of sales tax that is included in the total amount you paid.
The sales tax is 6%, which means that for every $100, there will be an additional $6 in tax.
To find the amount of tax included in the total price you paid, we can set up the following equation:
Tax = Total Price * Tax Rate
Let's substitute the values given in the question:
Tax = $42.40 * 6%
To calculate the percentage value, we can divide 6% by 100:
Tax = $42.40 * 0.06
Now, we can find the tax amount:
Tax = $2.54
Since the tax is included in the total price you paid, we can subtract the tax amount from the total price to find the retail price of the gift:
Retail Price = Total Price - Tax
Retail Price = $42.40 - $2.54
Therefore, the retail price of the gift is $39.86.