Mathematicians: A tax exercise for you

[JoeCamaro 11]

Sales Tax in Puerto Rico is 7%. I would like to go out and sell my stuff and charge the Tax but without carrying any change (pennies, dimes, quarters, etc.)

I know how to calculate the tax amount. If I sell a $15 item then I multiply that by 7% or 0.07 and I get the tax amount which is $1.05 for the $15 item.

Now I need a formula to calculate the tax percent out of a round number.

Lets say I just want to charge my customer a round $15.

The formula needs to be something like this

$15 - 7% = X

or

$15 - X = 7%

or something of that matter

The thing is that I need to be able to change the item's value and get a the real X value. 7% needs to be constant.

If you thought about it, $1.05 is not the 7% of a round $15 (tax included) $1.05 is the 7% of $15 WITHOUT tax.

Example. If I charge $15 (tax included) and I send $1.05 for taxes that leaves me with $13.95 as the item price, but if I multiply $13.95 x 0.07 tax would be $0.98 not $1.05

I would have to sell the item at $14.02 to be able to charge a round $15. $14.02 x .07 = $0.98. I know it because I played with the values until I got there by using the calculator. That wastes a lot of time. With a formula, it will be real fast an easy.

Got it?

Any good mathematician around?

Thanx

Joe

[RegisG 0]

You could do the calculations or simply add the tax and round to nearest dollar  e.g. the $15 price is $16 includes 7% tax and you make up any pennies difference.  By rounding, it will all average out.  Keep & pay the actual tax in your records

my 2 "cents" worth

[BannerJohn 1,324]

Joe...you think too much!  Forget the math. Add 7% then round it up to the nearest even number. Or down,whichever is closest.

[firemalt 10]

See if this will help ya out, Joe?

http://www.window.state.tx.us/taxinfo/taxforms/rc7.pdf

[nonabelle 5]

we do ours t shirts like Regis does.

[JoeCamaro 11]

That is very useful firemalt thank you. I will print that.

But the thing is that I want to be able to write any round number, lets say $7 and be able to exactly calculate what part of it is the tax.

Joe

[JoeCamaro 11]

Oh, sorry Tykite. I dont have exel here, but I will check it out as soon as I can. Thank you, thank you I appreciate it Tykite.

Joe

[firemalt 10]

That is very useful firemalt thank you. I will print that.

But the thing is that I want to be able to write any round number, lets say $7 and be able to exactly calculate what part of it is the tax.

Joe

You can do that with the PDF link I posted... you just have to do a little adding to figure it out.

Let's say you sell a shirt for $7(with tax included). Now it's tax time, and you need to figure out what the tax was, and what you actuall sold the product for:

The charts shows that anything priced between $6.50 and $6.64 would have $0.46 tax... so $6.54(product) + $0.46(tax) = $7.00(what you collected from the customer.

I had to use the chart a few times to figure things out, and the best way to get it work for me...

[JoeCamaro 11]

Tykite, you are a genius!!! Did you make it yourself? You are great! Thank you.

Joe

PS

I do not have openoffice but I will 

[JoeCamaro 11]

I made the spreadsheet, not openoffice 

                          Thats what I meant!

[Benr98 40]

Joe, ok Myron has an answer for ya:

Multiply your total by 0.934667 and that will give you the total amount minus tax.

Note: this only works for 7% interest!!

Hope this helps ya.

Jenny

[JoeCamaro 11]

Jenny, thats it!!! Thank you! Tell Myron he is a genius 

How did he figure that out? That smart, simple and easy.

Thank you all for your suggstions  Tykite and Myron got it. That was exactly what I needed. Now I can go and charge my taxes and still get round numbers, I can even detail the tax amount in the receipts and be exact.

Firemalt, your chart was helpful too, I will keep it in my files, but try the equation and see how easy it is.

Awesome job guys!

Joe

[Dellrose Custom Lighting 0]

Joe, ok Myron has an answer for ya:

Multiply your total by 0.934667 and that will give you the total amount minus tax.

Note: this only works for 7% interest!!

Hope this helps ya.

Jenny

Does Myron know what it would be for 9.5%? I wouldnt even know where to begin to come up with a figure like you did.

[firemalt 10]

Or for 7.25%?  :thumbsup:

[JoeCamaro 11]

By the same time I asked here about the formula, I also asked a genius boy I know and he made a whole X equation for me, but Tykite's and Myron's way are a lot easier.

Joe

[Benr98 40]

Ok here you guys go:

9.5% use this:  0.913242

7.25% use this: 0.932401

Sure hope it helps ya.  Myron LOVES math....when I asked him, he hurried and did it before he left for work.

Jenny

[Benr98 40]

Jenny, thats it!!! Thank you! Tell Myron he is a genius 

How did he figure that out? That smart, simple and easy.

Thank you all for your suggstions  Tykite and Myron got it. That was exactly what I needed. Now I can go and charge my taxes and still get round numbers, I can even detail the tax amount in the receipts and be exact.

Firemalt, your chart was helpful too, I will keep it in my files, but try the equation and see how easy it is.

Awesome job guys!

Joe

He said it's an easy algebraic equation.  First you need a number with tax and a number without tax.  The number with tax MUST be exact, than you take the original number and divide it by the number with tax and that gives you the .934667 number.    To me...I'm lost already.....LOL 

Jenny

[nonabelle 5]

uh jenny, what just happened? math! oh no :'( :'(

will u ask myron to do 9.25% ? the rest is mind boggling to me.

TIA

[Benr98 40]

Hey Sheila, I'll have him get you that number when he gets home this afternoon.

Jenny

[nonabelle 5]

Hey Sheila, I'll have him get you that number when he gets home this afternoon.

Jenny

thanks jenny, that's fine. and may i ask who is myron?

[Benr98 40]

Sheila, Myron is my dawg.....LOL.....................nah he's my hubby!! 

Jenny

[nonabelle 5]

Sheila, Myron is my dawg.....LOL.....................nah he's my hubby!! 

Jenny

[/quote

haha jenny, that was good. hehe just wandering glad he's the hubby.

[Benr98 40]

Why who did you think he was??

[firemalt 10]

TY!

[nonabelle 5]

whole jenny, let me get FM,  :. now jenny he could have been a child, nephew, brother, u know.