Problem 17

Question

Including \(8 \%\) sales tax, an inn charges \(\$ 162\) per night. Find the inn's nightly cost before the tax is added.

Step-by-Step Solution

Verified
Answer
The nightly cost before the tax is added is approximately \$150.
1Step 1: Write down the equation
From the problem, the equation that represents the situation is \(C + 0.08C = 162\), where \(C\) represents the cost before tax.
2Step 2: Simplify the equation
The left side of the equation can be simplified to \(1.08C = 162\), since the cost \(C\) and its tax \(0.08C\) are added together.
3Step 3: Solve for \(C\)
The next step is to isolate \(C\). This can be done by dividing both sides of the equation by \(1.08\). This gives the formula \(C = 162/1.08\).