Neal buys a board game. He pays for the board game and pays \$1.54$1.54dollar sign, 1, point, 54 in sales tax. The sales tax rate is 5.5\%5.5%5, point, 5, percent.
Neal paid $1.54 for a board game with sales tax of 5.5%. The cost of the board game before tax is $1.46. To determine the price of something from the total of a sale with sales tax included, divide the sales total by the tax rate plus 1 (total/rate + 1). In this case, the equation to solve is 1.54/1 + .055. Rounded off, the answer is that the board game cost $1.46 and the tax is 8 cents.
