Answer:
$625.
Step-by-step explanation:
Let x represent original cost of the guitar.
We have been given that after a 20% discount and 6% tax, a guitar cost $530.00. We are asked to find the original price of the guitar.
The cost of guitar after discount would be 80% (100%-20%) of x that is [tex]0.80x[/tex].
The cost of guitar after tax would be cost of guitar after discount plus 6% of price after discount that is [tex]0.80x+0.80x(0.06)[/tex].
[tex]0.80x+0.80x(0.06)=530[/tex]
[tex]0.80x+0.048x=530[/tex]
[tex]0.848x=530[/tex]
[tex]\frac{0.848x}{0.848}=\frac{530}{0.848}[/tex]
[tex]x=625[/tex]
Therefore, the original price of the guitar is $625.