by Ben Ku Tue Aug 18, 2009 10:34 pm
Tom, Good approach on this problem.
If we let x be the purchase price, then the tax at 8% is 0.08x, and the tax at 5% is 0.05x. That is how the first equation is set up:
0.08x = 0.05x + 12
So x = 400.
Now she paid a sales tax of 8%, which is 0.08*400 = 32, so her total price is $432.
Hope that helps!
Ben Ku
Instructor
ManhattanGMAT