Question

Caleb bought groceries and paid $1.60 in sales tax.the sales tax rate is 2.5% What was the price of Caleb’s groceries,before tax

Answer 1

Let price of the Caleb's groceries was $x.

Given that tax rate is 2.5% or 0.025

Then sales tax is given by product of 0.025 and x.

which is 0.025x.

Given that tax paid is $1.60 so both must be equal

$0.025x=1.6$

divide both side by 0.025

$x=1.6/0.025$

$x=64$

Hence final answer is $64.