Question

A customer bought a car and paid $1,080 in sales tax.

The tax rate is 6%.

What was the price of the car before the tax?

Answer 1

$3600

Explanation:

So the answer is basically $1080 divided by the 6%. Then you times your answer by two. Then add a zero to it.

Answer 2

The price of the car was 18,000. To calculate tax, you turn the percentage into a decimal and multiply it by the price. To find it, you divide the percentage and price.
In this case, you just simply divide 1080 by 6% (0.06), which gives you 18000.
If you multiply 18000 by 0.06, you will get the same thing. Therefore, 18,000 was the price of the car before tax.