dferm wrote:In a certain state, gasoline stations compute the price per gallon p, in dollars, charged at the pump by adding a 4% sales tax to the dealer's price per gallon d, in dollars, then adding a gasoline tax of $0.18 per gallon. Which of the following gives the dealer's price per gallon d in terms of the price per gallon p charged at the pump?
A) d = p - 0.22
B) d = p/1.22
C) d = (p/1.04) - 0.18
D) d = (p - 0.18)/1.04
E) d = (p - 0.04)/1.18
Let d=100.
Since the price includes a sales tax of 4% and a gas tax of $0.18, we get:
p = 100 + .04(100) + .18 = 104.18.
Thus, when p = 104.18, d=100.
Scanning the answer choices, we should see that
D is the most likely to be correct, since it subtracts 0.18 from the value of p=104.18:
d = (p - 0.18)/(1.04) = (104.18 - 0.18)/(1.04) = 104/(1.04) = 100.
The correct answer is
D.
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