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Ch. 1 - Equations and Inequalities
Blitzer - College Algebra 8th Edition
Blitzer8th EditionCollege AlgebraISBN: 9780136970514Not the one you use?Change textbook
Chapter 2, Problem 18

Including a 17.4% hotel tax, your room in Chicago cost \$287.63 per night. Find the nightly cost before the tax was added.

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1
Let the nightly cost before tax be represented by \(x\).
The hotel tax is 17.4%, which can be written as a decimal: \(0.174\).
The total cost after adding the tax is the original cost plus 17.4% of the original cost, which can be expressed as \(x + 0.174x\) or equivalently \$1.174x$.
Set up the equation representing the total cost including tax: \(1.174x = 287.63\).
Solve for \(x\) by dividing both sides of the equation by \(1.174\): \(x = \frac{287.63}{1.174}\).

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Key Concepts

Here are the essential concepts you must grasp in order to answer the question correctly.

Percentage and Percent Increase

A percentage represents a part of a whole expressed per hundred. Percent increase refers to how much a quantity grows relative to its original amount, often calculated by adding a certain percent to the original value. In this problem, the hotel tax is a 17.4% increase on the base price.
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Finding the Original Amount Before Tax

To find the original price before tax, you divide the total cost by one plus the tax rate expressed as a decimal. This reverses the effect of the percentage increase, isolating the base price before the tax was added.
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Converting Percent to Decimal

Percent values must be converted to decimals for calculations by dividing by 100. For example, 17.4% becomes 0.174. This conversion is essential for multiplying or dividing when working with percentages in algebraic problems.
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