A theater group made appearances in two cities. The hotel charges before tax in the second city were $1,000 lower than in the first. The tax on the hotel bill was 5% in the first city and 4% in the second. After the trip, the total tax paid on accommodation expenses was $387.50. How much was the hotel bill in the first city before tax?

1 answer

pretax bill in first city = $x : Tax = 5%
pretax bill in second city = x-1000: Tax = 4%
..
0.05x+0.04(x-1000)= 387.50
0.05x+0.04x-40=387.50
0.09x=387.50+40
0.09x=427.50
/0.09
x= $4750 Bill in first city