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31 October, 09:28

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?

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  1. 31 October, 09:43
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    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.
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