Q. Caleb bought groceries and paid 1.60 in sales tax. The sales tax rate is 2.5%. What was the price of Caleb's groceries, before tax?
Calculate Total Amount: To find the price of Caleb's groceries before tax, we need to calculate the total amount paid without the sales tax. The sales tax is given as 2.5%, and the amount of sales tax paid is $1.60. We can set up the equation where the price of the groceries before tax is represented by P, and the sales tax rate is 0.025 (2.5% as a decimal). The equation is P×0.025=1.60.
Set Up Equation: To find P, we need to divide the amount of sales tax paid by the sales tax rate. So, we divide $1.60 by 0.025 to get P. The calculation is 0.0251.60=P.
Divide to Find P: Performing the division, we get P=64. This means that the price of Caleb's groceries before tax was $64.
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