Question

Suppose a friend tells you she paid a total of $20,500 for a car, and you’d like to know the car’s list price (the price before taxes) so that you can compare prices at various dealers. Find the list price of the car if your friend bought the car in:

Roswell, where the sales tax is 6.5%

Answer 1

Given :

Total amount paid for the car is, A = $20,500.

Sales tax is 6.5%.

To Find :

The list price i.e. price without tax.

Solution :

Let, list price is P.

P = A - 0.65A

P = A( 1 - 0.65 )

P = 20500×( 1 - 0.065 )

P = $19167.5

Therefore, the list price of car is $19167.5 .