Question

A theater group made appearances in two countries. The hotel charges before tax in the second country were $500 lower than in the first. The tax on the hotel bill was 5.5% in the first country and 4.5%in the second. After the trip, the total tax paid on accommodation expenses was $477.50 . How much was the hotel bill in the first country before tax?

Answer 1

1ST Country:
Charges before taxes = $X.
Taxes = $0.055X.

2nd Country:
Before taxes = (X-$500).
Taxes = (0.045(X-500).

Taxes = 0.055x + 0.045(x-500) = 477.50,
=.055x + 0.045x - 22.5 = 477.50,
0.1x = 477.50 + 22.50 = 500,
X = $5000 Before taxes in 1st country.