Question

Lisa's store collects 5% sales tax on every item sold. If she collected $22.00 in sales tax, what was the cost of the items her store sold?

Answer 1

Since we are looking for the principal amount, then all we have to do is reverse the process of getting the amount of tax. In order to get the principal, you just have to divide 22 with 0.05. The answer is 440 so that is the principal amount you are looking for.