Reverse Calculate the Price Without 8% Sales Tax Rate Out of US $537 (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 8% Sales Tax Rate Out of US $537 (USD, US Dollar) Price With Tax Included. Detailed answer:
1. Rewrite 'Price with Sales Tax'.
Replace the 'Amount of Sales Tax' in the ecuation of 'Price with Sales Tax':
Formula:
Amount of Sales Tax =
Sales Tax Rate × Price without Sales Tax;
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. Calculate the 'Price without Sales Tax':
Formula:
Price with Sales Tax =
Price without Sales Tax × (1 + Sales Tax Rate)
⇒
Formula:
Price without Sales Tax =
Price with Sales Tax ÷ (1 + Sales Tax Rate)
Calculation:
Price without Sales Tax =
537 ÷ (1 + 8%) =
537 ÷ (1 + 8/100) =
537 ÷ (1 + 8 ÷ 100) =
537 ÷ (1 + 0.08) =
537 ÷ 1.08 ≈
497.222222222222 ≈
(Rounded off to a maximum of 2 decimals)
497.22
3. 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 =
537 - 497.222222222222 =
39.777777777778 ≈
(Rounded off to a maximum of 2 decimals)
39.78
Price without Sales Tax ≈ US $497.22 (USD, US Dollars)
Amount of Sales Tax ≈ US $39.78 (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 %)