A woman owns a small, cash-only business in a state that requires her to charge 7% sales tax on each item she sells. At the beginning of the day, she has $210 in the cash register. At the end of the day, she has $1,173.00 in the register. How much money should she send to the state government for the sales tax she collected?

1 answer

amount sold ... end of day minus beginning of day

she collects 1.07 times the marked price (that's the tax included)

tax collected ... amount sold * (.07 / 1.07)