To find the original price of the guitar before the discount and tax were applied, we need to work backwards from the final price.
Let’s denote the original price of the guitar as P.
1. First, we know the final price after a discount and tax is $530.00. Before tax, the price was the final price minus the tax amount.
2. The tax rate is 6%, which means that the price before tax is 94% of the final price:
Price before tax = Final price / (1 + tax rate)
Price before tax = $530.00 / 1.06
Price before tax = $500.00
3. Now, this price before tax accounts for the guitar’s price after the $20 discount. Therefore, we need to add back the discount to find the original price:
Original Price = Price before tax + Discount
Original Price = $500.00 + $20.00
Original Price = $520.00
In conclusion, the original price of the guitar was $520.00.