Problem 36

Question

Including \(5 \%\) sales tax, an inn charges \(\$ 252\) per night. Find the inn's nightly cost before the tax is added.

Step-by-Step Solution

Verified
Answer
The inn's nightly cost before the tax is added is approximately $240.
1Step 1: Identify the Percent
Identify what percentage the total amount represents. In this case, the total cost of $252 includes the original cost plus a 5% tax, thus it represents 105% of the original cost (100% + 5%).
2Step 2: Calculate cost before tax
The next step is to figure out what 1% would be, and then multiply to get 100%, the original cost. To find 1%, divide the total cost by 105. To get the original cost (100%), multiply the 1% value by 100.
3Step 3: Perform the calculation
Divide $252 by 105 to get 1%, which is around $2.40. Therefore, to find the original cost (100%), multiply $2.40 by 100, which results in $240