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Three children put their money together to buy their parents a gift. Together they have $91. If the state sales tax is 5%, what is the maximum amount of money they can spend on the present?



Answer :

To figure this out, you must determine what 5% of $91 is, and then subtract that amount from the $91 to determine how much the item can cost before sales tax. 5% is the same as .05, so 5% of 91 is .05*91=4.55, so they can buy an item that costs as much as 91-4.55=$86.45

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