Question

4. If $988 is the total of a sale that includes sales tax of 4%, what is the selling price of the item only?

Answer 1

The total sale is 1.04p=$988.  This includes 4% tax.
                                                     $988
The before-tax price is then p = ---------- = $950  (answer)
                                                       1.04

Answer 2

If 988 includes 4% sales tax, we can use this equation to find the original price:

x + (x * .04) = 998

This equation tells us that a number, which, in this case, is the selling price of the item, plus four percent of that same number equals 998.

All we have to do now is isolate x.

x + (x * .04) = 998
Simplify.
x  + .04x = 998
1.04x = 998
Divide both sides by 1.04
x = 959.615385, which rounds up to 959.66.

The selling price of the item was $959.66