You are charged $279 on your credit card for a hotel stay, you call to complain about the unexpectedly high charge, but are told there are a total of 24% taxes for hotel rooms where you stayed. What was the advertised price of the room before taxes?
advertised price(1.24)=279
solve for advertised price
To determine the advertised price of the room before taxes, we need to calculate the base price.
In this case, we know that the total charge on your credit card, including taxes, is $279. We also know that the taxes account for 24% of the total charge.
To calculate the base price, we can set up the following equation:
Base price + Taxes = Total charge
Let's assume the base price is represented by 'x'. Therefore, the equation can be written as:
x + 0.24x = $279
To solve this equation, we can combine like terms:
1.24x = $279
Now, isolate 'x' by dividing both sides of the equation by 1.24:
x = $279 / 1.24
Calculating this gives us:
x = $224.19 (rounded to the nearest cent)
Therefore, the advertised price of the room before taxes was approximately $224.19.
To find the advertised price of the room before taxes, we need to subtract the tax amount from the total charge on your credit card.
Step 1: Calculate the tax amount
Multiply the total charge by the tax rate of 24%:
Tax amount = $279 * 0.24 = $66.96
Step 2: Subtract the tax amount from the total charge
Advertised price before taxes = Total charge - Tax amount
Advertised price before taxes = $279 - $66.96 = $212.04
The advertised price of the room before taxes was $212.04.