A hotel manager found that his gross receipts for the day, including a 5% sales tax, were $1645.35. Find the amount of sales tax collected.

The amount of sales tax collected is $78.35

Step-by-step explanation:

Percentages

The gross receipts for the day were $1645.35, including a 5% sales tax.

If a percentage is already included (added) to a certain quantity, then it's not the original quantity or 100%.

The problem states that the gross receipts already include a 5% sales tax, thus the receipts are 100+5=105% of the net sales.

This means the net sales were $1645.35 / 105 * 100 = $1567

Subtracting $$1645.35 - $1567 = $78.35 we get the amount of sales tax.

The amount of sales tax collected is $78.35

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