Q. Caleb bought groceries and paid $1.60 in sales tax. The sales tax rate is 2.5%. What was the price of Caleb's groceries, before tax?
Calculate Pre-tax Amount: To find the price of Caleb's groceries before tax, we need to calculate the pre-tax amount using the sales tax amount and the sales tax rate. We have:Sales tax paid: $1.60Sales tax rate: 2.5%The formula to calculate the pre-tax price is:Pre-tax price = Sales tax paid / Sales tax rateFirst, we need to convert the sales tax rate from a percentage to a decimal by dividing by 100.Sales tax rate in decimal = 2.5/100=0.025
Convert Sales Tax Rate: Now we can calculate the pre-tax price of the groceries using the sales tax paid and the sales tax rate in decimal form.Pre-tax price = $1.60/0.025
Calculate Pre-tax Price: Perform the division to find the pre-tax price.Pre-tax price = $1.60/0.025=$64.00
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