We know that
• The sales tax is 8%.
,
• The sales tax on a 10-speed bicycle is $12.
If the sales tax on a 10-speed bicycle is $12, that means it represents 8% of the price.
Once we know the equivalence 8% = $12, we divide 12 by 8, and multiply by 100.
[tex]100\cdot\frac{12}{8}=\frac{1200}{8}=150[/tex]
This means the 10-speed bicycle has a price of $150.
Therefore, the purchase price is $150.
On the other hand, the total price refers to the purchase price plus the sales tax.
[tex]150+12=162[/tex]
Therefore, the total price is $162.
