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Bunuel
A certain state has a sales tax of 5 percent on the portion of a purchase price that is greater than $100. If a customer paid a sales tax of $4 on a particular item, what was the purchase price of the item?

(A) $120
(B) $124
(C) $180
(D) $184
(E) $220
Let x = purchase price of item

There is a 5 percent sales tax on the portion of x that is greater than $100, and a customer paid sales tax of $4 on an item:

.05(x-100) = 4

.05x - 5 = 4

.05x = 9

x = 180

Answer C
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Hello from the GMAT Club BumpBot!

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