A man realizes he lost the detailed receipt from the store and only has the credit card receipt with the after-tax total. If the after-tax total was \( \$ 1,013.65 \), and the tax rate in the area is \( 6.7 \% \), what was the pre- tax subtotal?
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To find the pre-tax subtotal, you'll want to use the formula that relates the pre-tax amount and the tax rate. The after-tax total can be expressed as: \[ \text{After-tax total} = \text{Pre-tax subtotal} \times (1 + \text{Tax rate}) \] Given that the after-tax total is \( \$ 1,013.65 \) and the tax rate is \( 6.7\% \) (or \( 0.067 \) in decimal form), we can rewrite the equation: \[ 1,013.65 = \text{Pre-tax subtotal} \times (1 + 0.067) \] \[ 1,013.65 = \text{Pre-tax subtotal} \times 1.067 \] Now, isolate the pre-tax subtotal by dividing both sides by \( 1.067 \): \[ \text{Pre-tax subtotal} = \frac{1,013.65}{1.067} \] \[ \text{Pre-tax subtotal} \approx 950.00 \] Thus, the pre-tax subtotal is approximately \( \$950.00 \). Happy shopping, and remember to keep those receipts safe!
