Question

if a gift is 42.40 including tax,what is the retail price for the gift if the sales tax is 6% ??

Answer 1

Set up a ratio. The cost of the gift including tax is 106% of the cost without tax.

42.40/106 = x/100

Solve for x.

(Note it does not matter whether you use 1.06 or 106 for the percentages in the ratio as long as you are consistent).

Answer 2

1.06x = 42.4

x = 42.4 / 1.06
x = ?

Answer 3

42.40 = X * 1.06
where X is the retail price

X = 42.40/1.06 = $40.00