What Is The Price Of A Pair Of Jeans That Was $60.55 After A 9% Tax Was Added To It?Remember To Round Money To The Nearest Hundredth Place (2 Decimal Places).
Understanding the Problem
To find the original price of the pair of jeans, we need to reverse the process of adding a 9% tax. This means we will need to remove the 9% tax from the final price of $60.55. Understanding the concept of percentage and its application in real-life scenarios is crucial.
Calculating the Original Price
The formula to calculate the original price is:
Original Price = Final Price / (1 + Tax Rate)
In this case, the final price is $60.55, and the tax rate is 9% or 0.09.
# Import necessary modules
import math
# Define variables
final_price = 60.55
tax_rate = 0.09
# Calculate the original price
original_price = final_price / (1 + tax_rate)
# Round the result to the nearest hundredth place
original_price = round(original_price, 2)
Applying the Formula
Now, let's apply the formula to find the original price.
Original Price = $60.55 / (1 + 0.09) Original Price = $60.55 / 1.09 Original Price = $55.50
Conclusion
The original price of the pair of jeans is $55.50. Rounding money to the nearest hundredth place is essential in financial transactions.
Real-World Application
This concept is widely used in various industries, such as:
- Retail: When calculating the original price of an item after a discount or tax.
- Finance: When calculating the original value of an investment after interest or fees.
- Accounting: When calculating the original cost of an asset after depreciation.
Tips and Tricks
- Always round money to the nearest hundredth place to avoid errors in financial transactions.
- Use the correct formula to calculate the original price, which is: Original Price = Final Price / (1 + Tax Rate).
- Understand the concept of percentage and its application in real-life scenarios.
Example Use Cases
- A store sells a pair of jeans for $60.55, which includes a 9% tax. To find the original price, we use the formula: Original Price = $60.55 / (1 + 0.09) = $55.50.
- A bank charges a 5% interest rate on a loan. To find the original value of the loan, we use the formula: Original Value = $1000 / (1 + 0.05) = $952.38.
Conclusion
In conclusion, the original price of the pair of jeans is $55.50. Understanding the concept of percentage and its application in real-life scenarios is crucial. By applying the correct formula and rounding money to the nearest hundredth place, we can accurately calculate the original price of an item after a tax or discount.
Frequently Asked Questions
Q: What is the original price of a pair of jeans that was $60.55 after a 9% tax was added to it?
A: The original price of the pair of jeans is $55.50. To find the original price, we use the formula: Original Price = Final Price / (1 + Tax Rate).
Q: How do I calculate the original price of an item after a tax or discount?
A: To calculate the original price, you need to divide the final price by (1 + Tax Rate). For example, if the final price is $60.55 and the tax rate is 9%, the original price would be $60.55 / (1 + 0.09) = $55.50.
Q: What is the formula to calculate the original price?
A: The formula to calculate the original price is: Original Price = Final Price / (1 + Tax Rate).
Q: Why is it essential to round money to the nearest hundredth place?
A: Rounding money to the nearest hundredth place is essential in financial transactions to avoid errors. It ensures that the original price is calculated accurately.
Q: Can I use this formula to calculate the original price of an item after a discount?
A: Yes, you can use this formula to calculate the original price of an item after a discount. The only difference is that you will use the discount rate instead of the tax rate.
Q: How do I calculate the original price of an item after a discount?
A: To calculate the original price after a discount, you need to divide the final price by (1 - Discount Rate). For example, if the final price is $60.55 and the discount rate is 10%, the original price would be $60.55 / (1 - 0.10) = $67.40.
Q: What is the difference between a tax and a discount?
A: A tax is a charge imposed by the government on goods and services, while a discount is a reduction in the price of an item. The formula to calculate the original price is the same for both taxes and discounts.
Q: Can I use this formula to calculate the original price of an item after a combination of tax and discount?
A: Yes, you can use this formula to calculate the original price of an item after a combination of tax and discount. You need to first calculate the original price after the discount, and then add the tax to find the final price.
Q: How do I calculate the original price of an item after a combination of tax and discount?
A: To calculate the original price after a combination of tax and discount, you need to follow these steps:
- Calculate the original price after the discount: Original Price = Final Price / (1 - Discount Rate)
- Add the tax to the original price: Final Price = Original Price + (Original Price * Tax Rate)
For example, if the final price is $60.55, the discount rate is 10%, and the tax rate is 9%, the original price would be:
Original Price = $60.55 / (1 - 0.10) = $67.40 Final Price = $67.40 + ($67.40 * 0.09) = $73.59
Conclusion
In conclusion, understanding the price of a pair of jeans with a 9% tax requires knowledge of the formula to calculate the original price. By following the steps outlined in this article, you can accurately calculate the original price of an item after a tax or discount.