Question

I just have 2 more.

You are charged $279 on your credit card for a hotel stay, you call to complain about the unexpectedly high charge, but are told there are a total of 24% taxes for hotel rooms where you stayed. What was the advertised price of the room before taxes?

Answer 1

Alright so, we payed $279 and the tax is 24% of your price. This $279 is the price of the tax and the hotel stay. Let’s say our stay costs x dollars, this means 124% of x = 279 because as we said that’s the price of the room and the tax together so it’s [100(room price) + 24(tax)]% . 124% is basically 1.24, so we can say 1.24 * x = 279, meaning x=279/1.24=225$. So this means the price of the room before taxes was 225 dollars, hope this helps.