Question

A city has a 5% sales tax. A book costs 32.55 after tax. How much did he cost before tax?

Answer 1

First step is to turn 5% into a decimal -- 0.05
Next, find out what 5% of $32.55 is by multiplying
0.05 x 32.55
= 1.6275
Round to the nearest cent
= $1.63
This is the amount of tax $32.55
If we want to know what it the book costs before tax we simply take the tax off.
$32.55 - $1.63
= $30.92