Question

A customer paid 5$ in tax. His tax rate was 5%. Fin the dollar amount of his purchase

Answer 1

Hey there!

Let's create an equation for this scenario.

0.05x=5

This equation shows that the $5 is equal to 0.05% (sales tax) of the cost paid for the item.

let's solve by dividing both sides by 0.05x.

x=100

Therefore, his purchase costed $100 before sales tax.

I hope this helps!