Reverse Calculate the Price Without 7.6% Sales Tax Rate Out of US $116.09 (USD, US Dollar) Price With Tax Included. Find the Price Before Tax and the Amount of the Deducted Sales Tax. Answer, Formula and Explanation
Reverse Calculate the Price Without 7.6% Sales Tax Rate Out of US $116.09 (USD, US Dollar) Price With Tax Included. Detailed answer:
1. The relationship between the 'Price with Sales Tax' and the 'Price without Sales Tax':
Formula:
Amount of Sales Tax =
Sales Tax Rate × Price without Sales Tax
Substitute for the 'Amount of Sales Tax' into the formula below.
Formula:
Price with Sales Tax =
Price without Sales Tax + Amount of Sales Tax =
Price without Sales Tax + Sales Tax Rate × Price without Sales Tax =
Price without Sales Tax × (1 + Sales Tax Rate)
2. Express the 'Price without Sales Tax' by the 'Price with Sales Tax':
Formula:
Price with Sales Tax =
Price without Sales Tax × (1 + Sales Tax Rate)
⇒
Price without Sales Tax =
Price with Sales Tax ÷ (1 + Sales Tax Rate)
3. Calculate the 'Price without Sales Tax':
Calculation:
Price without Sales Tax =
116.09 ÷ (1 + 7.6%) =
116.09 ÷ (1 + 7.6/100) =
116.09 ÷ (1 + 7.6 ÷ 100) =
116.09 ÷ (1 + 0.076) =
116.09 ÷ 1.076 ≈
107.890334572491 ≈
(Rounded off to a maximum of 2 decimals)
107.89
4. Calculate the 'Amount of the Sales Tax':
Formula:
Amount of Sales Tax =
Price with Sales Tax - Price without Sales Tax
Calculation: Amount of Sales Tax =
116.09 - 107.890334572491 =
8.199665427509 ≈
(Rounded off to a maximum of 2 decimals)
8.2
Price without Sales Tax ≈ US $107.89 (USD, US Dollars)
Amount of Sales Tax ≈ US $8.2 (USD, US Dollars)
Signs: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.
More Operations of Reverse Calculating the Price Without Sales Tax:
Reverse Calculate the Sales Tax, Calculate the Amount of Contained Tax
Price without the Sales Tax = Price with the Sales Tax ÷ (1 + Sales Tax Rate %)