# When the rate of sales tax is increased from 4.5% to 7%, a car dealer sells a car for Rs.3,750 more. Find the quoted price of the car.

## When the rate of sales tax is increased from 4.5% to 7%, a car dealer sells a car for Rs.3,750 more. Find the quoted price of the car.

For this question, the answer is that the car costs Rs \$150,000 before sales tax is added to the price.  Here is how this is determined.Let us say that x is the price of the car.  We know that the difference between 7% of the car’s price and 4.5% of the car’s price is Rs 3750.  Mathematically, that is stated as.07x – .045x = 3750We subtract the terms on the left and get.025x = 3750We divide both sides by .025 and getx = 150000You can check this by multiplying that number first by .07 and then by .045.  You will find the difference between the two numbers is 3750.
When the rate of sales tax is increased from 4.5% to 7%, a car dealer sells a car for Rs.3,750 more. Find the quoted price of the car.
When the rate of sales tax is increased from 4.5% to 7%, a car dealer sells a car for Rs.3,750 more. Find the quoted price of the car.