Thread: tax and percent

A state sales tax rate is 4.8%. If the tax on a purchase was $23.76, what was the price of the purchase?






Dave invested $8,500 in a time deposit. What interest will he earn for 2 years if the simple interest rate is 4.75%?

Originally Posted by Patience

A state sales tax rate is 4.8%. If the tax on a purchase was $23.76, what was the price of the purchase?

Let the price (before tax) be P, then the tax is:

0.048 P = 23.76,

so:

P = 23.76/0.048 = $495

RonL

Originally Posted by Patience

Dave invested $8,500 in a time deposit. What interest will he earn for 2 years if the simple interest rate is 4.75%?

With simple interest the interest paid is:

I = Capital*rate*time=8500*0.0475*2=$807.5

RonL