I'm doing a problem that's are tax inclusive & exclusive. Finding tax.
Doing a basic example involving $100 including tax. tax rate is 15%.
I was taught at school this method.
and therefore tax is $15.
Then $85 (excluding tax). If I wanted to go back to tax inclusive you add 15% on top of cost price.
It doesn't come back to the correct amount tax inclusive of $100.
Here is the proper calculation formula I was given to use. 100 * (3/23)
and yes that method is right.
Because that method is correct, can anyone explain to me algebraically as to how they derived the formula: Price (tax inclusive) * (3/23) based on a 15% tax rate and why isn't my old method not correct?