What was the cost of the stuffers before taxes?

Question

The old lady who lived in a shoe was having some real trouble buying Christmas presents for her enormous family. Although she bought the least expensive stocking stuffers she could find, the bill was high. Of course, both a 15 percent sales tax and a 5 percent luxury tax were added to the original price. She paid a total of $100. What was the cost of the stuffers before taxes?

Answer 1

Sure sounds like a homework question.

That said, the original price was $100/1.2, or $83.33. Add 20% tax to that and you get $100.

You might get some answers of $80, but that's not correct. 20% of $80 is $16, so she'd only have paid $96 total, not $100.