Martha picked out a pair of shoes she wanted to buy. The cashier told her that the shoes were on sale for 30% off the original price. She rang up the sale price plus 5% tax, so Martha ended up paying $58.80 for her shoes. What was the original price for the shoes? - I am only confused about why the 5% tax added is simplified to 1.05. Why is 1 added to it?
Because, you multiply the tax by 105%. A 5% tax means the total price is 105% of the original (a 5% increase), not 5% of the orignial (which is much less than the orignial)
Thank you. Also, why am I supposed to multiply 1.05(0.7x) and not add it up like 1.05+0.7x?
100% <- original price 5% <- tax 100% + 5% = 105% <- original price + tax
Thank you. Also, why am I supposed to multiply 1.05(0.7x) and not add it up like 1.05+0.7x?
\[ y = x-(30\%)x = (100\%-30\%)x = (70\%)x \\ $58.80 = y + (5\%)y = (100\%+5\%)y = (105\%)y = (105\%)(70\%)x \]
In this case \(y\) is pre-tax and \(x\) is pre-sale.
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