Sales tax in Birmingham, AL, is the highest in the nation at 10 percent. Pete paid $9.44 in sales tax for an item in Birmingham, AL.

Percents
Total
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
100%
$9.44
$9.44
$9.44
$9.44
$9.44
$9.44
$9.44
$9.44
$9.44
$9.44


What was the price of the item before tax was included?
$0.09
$0.94
$94.40
$103.84

1 answer

To find the price of the item before tax was included, you can use the formula for sales tax:

\[ \text{Sales Tax} = \text{Price Before Tax} \times \text{Sales Tax Rate} \]

In this case, the sales tax paid is $9.44 and the sales tax rate is 10%, or 0.10 in decimal form.

We can rearrange the formula to solve for the price before tax:

\[ \text{Price Before Tax} = \frac{\text{Sales Tax}}{\text{Sales Tax Rate}} \]

Substituting in the values:

\[ \text{Price Before Tax} = \frac{9.44}{0.10} = 94.40 \]

So, the price of the item before tax was included is $94.40.