Calculate the Inn's Nightly Cost Before Tax

Understanding Sales Tax Calculation

When booking a stay at an inn, it's important to know the total cost per night, including any applicable sales tax. Often, the displayed price might already include the tax, so it's essential to be able to determine the inn's nightly cost before the tax is added. By understanding the calculation of sales tax and how to reverse this process, you can accurately estimate the true cost of your stay.

Final answer:

To calculate the inn's nightly cost before tax, first identify the amount of sales tax added to the total bill, then subtract the sales tax from the total amount paid. Using a restaurant bill as an example, we can pinpoint the original cost before tax by reversing the sales tax calculation.

Explanation:

To find the inn's nightly cost before tax, we need to understand the calculation of sales tax and how to reverse this process. Given that the sales tax rate is typically a percentage of the total cost, we can calculate the cost before tax using an example involving sales tax on a restaurant bill. For instance, if Jerod's restaurant bill is $47.50 and the sales tax is 6%, the amount of sales tax can be calculated by converting the percentage to a decimal (0.06) and multiplying by the total cost (0.06 × $47.50 = $2.85).

Now, to find the cost before tax when the total cost including tax is known, we subtract the amount of sales tax from the total cost. If the total amount paid includes the cost of the meal and the sales tax, then the formula reverses: cost before tax = total cost (including tax) - sales tax amount. Using the numbers from the example, if we know the total cost including tax, we would subtract $2.85 to find the original cost before tax.