Question

A trip, including hotel and air, is priced at $324.34 after tax. If the tax rate is 14%, calculate the price before tax that will result in this tax-included amount.

Answer 1

$454.07 is the answer.

Answer 2

Let's consider the original price of the trip (the price without tax) to be $p$. Tax is 14% of this price, or $.14p$. The price of the trip including tax is equal to the price of the trip without tax + the tax of the trip. In an equation this would be $p + .14p$, or $1.14p$.

By the information in the problem, we can say $1.14p = 324.24$. Since we are trying to find $p$, we need to isolate $p$ in the left side of our equation, meaning we must remove the 1.14. To do this, we will divide both sides of the equation by 1.14:

$\dfrac{1.14p}{1.14} = \dfrac{324.34}{1.14}$

$\boxed{p = \dfrac{324.34}{1.14} \approx 284.51}$

The price of the trip without tax would be $284.51 after rounding to the nearest hundredth.