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Basically the formula is as follows: When figuring tax, you multiply the price of the item, say it's $5, by 1.0725 (the tax here in California is 7.25%, which converted to a decimal is .0725, and the 1 before it is so it will ADD the $5 to the tax amount, instead of just telling you what tax will be). For example: $5 x 0.0725 = $0.36 Therefore: $5 x 1.0725 = $5.36 So since you multiplied to get that answer, you will divide to remove it. Example: 5.36 / 1.0725 = $5 Got it? Just remember to round your numbers up if need be, otherwise you won't get the correct amount. Good luck!
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