The tax on an item is $60. Given a tax rate of 8.5%, which of the following is the price of the item, to the nearest dollar, before taxes?
a. $408
b. $510
c. $650
d. $706
I think D but not for sure. Can u show me how u set this problem up?
D is right.
0.085x = 60
To solve this problem, we need to find the price of the item before taxes.
Let's assume that the price of the item before taxes is x dollars.
The tax rate is given as 8.5%, which means that 8.5% of the price of the item is equal to $60.
So, we can set up the equation:
0.085 * x = $60
To solve for x, divide both sides of the equation by 0.085:
x = $60 / 0.085
Using a calculator, we can find that x is approximately $705.88.
Now, we need to choose the amount closest to x from the given options:
a. $408 - this amount is lower than x.
b. $510 - this amount is lower than x.
c. $650 - this amount is lower than x.
d. $706 - this amount is equal to x.
Therefore, the price of the item, to the nearest dollar, before taxes is approximately $706.
So, the correct answer is d. $706.
To find the price of the item before taxes, we need to subtract the tax amount from the total price (including tax).
Let's assume the price of the item before taxes is x (in dollars).
The tax rate is 8.5%, which means the tax amount is 8.5% of x, or 0.085x.
To find the total price (including tax), we simply add the price before taxes and the tax amount:
Total price = Price before taxes + Tax amount
In this case, the total price is given as $60 more than the price before taxes. So we can write the equation as:
Total price = Price before taxes + $60
Combining the equations, we get:
Price before taxes + $60 = Price before taxes + 0.085x
Now we need to solve this equation to find the value of x. By isolating x, we can find the price before taxes.
Subtracting Price before taxes from both sides:
$60 = 0.085x
Divide both sides by 0.085:
$60 / 0.085 = x
Calculating:
x ≈ $705.88
Since we need to round to the nearest dollar, the price before taxes is approximately $706.
Therefore, the correct answer is option d) $706.