Question

Jamie paid $90.95, including 7% tax, for a pair of Nike running shoes. How much did the pair of shoes itself cost?

Answer 1

$85

Explanation:

When 7% tax is added to 100% of the marked price, the result is 107% of the marked price. Then ...

(price+tax) = 1.07×(marked price)

(price+tax)/1.07 = marked price = $90.95/1.07 = $85