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If you pay $22.90 for a DVD that includes a 7% sales tax, what is the price of the DVD before the sales tax?
$21.40
$21.30
$21.50
$20.95
Detailed Explanation
If y represents the price of the DVD before the tax, then the price with tax would be y + 0.07y = 22.90.
Therefore 1.07 y = 22.90, or y = 22.9 ÷ 1.07 = 21.4.
Be careful not to just take 7% of 22.90 and subtract.
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