Subtracting Taxes from Earnings
Date: 11/21/95 at 10:36:41 From: Anonymous Subject: State sales tax Customers at Flo's Meat Market must pay 6% state sales tax. One day Flo takes in $2650, including tax. How much of the $2650 does Flo have left after sending the tax money to the state?
Date: 11/30/95 at 0:46:58 From: Doctor Ken Subject: Re: State sales tax Hello! There's one thing that I'm going to assume about your problem, something that I didn't even know was an issue. Our archivist, Sarah Seastone, pointed out that when merchants collect 6% (for example) sales tax, they get to keep a very small percentage of that money for themselves, and give slightly less than the entire 6% to the state. But I'll assume that you don't care about that part. What we want to do is get an equation, and then the rest is easy. Let x be the price of all the stuff people bought _before_ charging the tax. That's the same as the amount Flo gets to keep after sending the tax to the state. So we know that x plus 6% of x equals $2650. How would you write that as an equation? Once you have that, you can solve for x and you'll be done! -Doctor Ken, The Geometry Forum
Search the Dr. Math Library:
Ask Dr. MathTM
© 1994- The Math Forum at NCTM. All rights reserved.