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Algebra Word Problem Example

Q:  The total cost of a holiday package to a warm climate in January can be modeled using the formula C=x+0.12x+0.15x+38. C is the total cost in dollars. x is the list price of the package in dollars. 0.12 is the tax rate, 12%. 0.15 is the service charge rate,15%. 38 is the airport tax in dollars.  Find the list price when the total cost of the holiday package is $3338.73.


A:  The nice thing here is that they set up the equation for you!

C = x + 0.12x + 0.15x + 38

We are asked to find the list price, which is x.  They tell us the total cost is $3338.73.  So, C = $3338.73.

Plug in that value for C to get:

$3338.73 = x + 0.12x + 0.15x + 38

Now we just have to solve for x (start by combining all of the x terms: x + .12x + .15x):

$3338.73 = 1.27x + 38

Subtract 38 from both sides:

3300.73 = 1.27x

Divide both sides by 1.27:

2599 = x

So, the list price was $2,599.

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