How to calculate the tax percentage of a purchase without knowing the tax rate?
I want to find out what percentage of tax was applied to the end price of $48.14. Before tax the price was $42.98.
If I do "42.98x100/48.14" the answer is 89.28% which would mean that the price was $42.98 + 10.72% . However, that's incorrect!
Even rounding to the nearest whole number brings it to 11%.
I actually know that the answer is 12% and I confirm it by calculating $42.98 x 1.12 = $48.14
Even though I know the answer in this case, I want to know how to simply calculate the sales tax on an item without knowing the tax rate, only knowing the before and after prices.
What am I doing wrong?
- 9 years agoFavorite Answer
Algebra let A= 42.98
let Pprice= 48.14
let Tx = tax rate
Then A(Tx)= Pprice-A
Follows (Tx)= (Pprice-A)/A
Sub Tx= (48.14-42.98)/42.98
Tx= 0.12 --> 12%
- DavidLv 79 years ago
42.98 + 42.98x = 48.14
42.98x = 5.16
x = 5.16 / 42.98
x = 0.12005583992554676593764541647278
12% to the nearest whole number
- 9 years ago
(48.14 - 42.98) / 42.98