The sales tax on a used car is $156, and the sales tax rate is 5%. Find the purchase price (the price before taxes are added).
0.05x = 156
The sales tax on a used car is 150$, and the sales tax rate is 6%. Find the purchase price (the price before taxes are added).
To find the purchase price of the used car, we can use the concept of sales tax. Sales tax is a percentage of the purchase price that is added on top as tax. In this case, the sales tax rate is 5%.
Let's represent the purchase price as "x".
The sales tax amount is given as $156, which is 5% of the purchase price.
Mathematically, we can represent this as:
(5/100) * x = $156
To solve this equation and find the purchase price, we need to isolate "x" on one side of the equation.
First, let's simplify the equation:
(5/100) * x = $156
We can rewrite the percentage as a decimal:
0.05 * x = $156
Now, we can solve for "x" by dividing both sides of the equation by 0.05:
x = $156 / 0.05
Calculating this:
x = $3120
Therefore, the purchase price (price before taxes are added) of the used car is $3120.