Question

Gustavo's bicycle cost $171.18 after a sales tax of 8%. write and solve an equation to find the price of the bike before the sales tax was added. enter your answer without the dollar sign

Answer 1

Let x = price of the bike before a sales tax.

The price after a sales tax of 8% is
x + 0.08x = 1.08x dollars

Because the price paid was $171.18, therefore
1.08x = 171.18
x = 171.18/1.08 = $158.50

Answer: 158.50