Question

You pay $79.34 for a new watch, which includes 6.5% tax. What was the original price of the watch?

Answer 1

$74.50

w = watch before tax

79.34 = price after tax

.065 = tax rate

79.34 = 1.065w (tax rate + 1 item) * w

/1.065 /1.065

74.50 = w

Check:

74.50 + 4.84 = 79.34

Explanation: