Suppose you buy lunch for $8.39 that includes a 5% sales tax.How much did the restaurant charge you for the lunch (excluding any tax)and how much do they owe for sales tax?
A)$8.39 for lunch and $0.42 for sales tax.
B)$8.39 for lunch and no sales tax.
C)$8.81 for lunch and $0.42 for sales tax.
D)$7.99 for lunch and $0.40 for sales tax.

Question

Quizplus · Accepted Answer

The total cost is $8.39, including a 5% sales tax. To find the original price before tax, divide the total by 1.05 (100% + 5% = 105%, or 1.05 in decimal form). $8.39 / 1.05 = $7.99. The sales tax is the difference between the total cost and the pre-tax price, which is $8.39 - $7.99 = $0.40.

Suppose You Buy Lunch for $8