Percentage of Outcome

Question

I have a vendor bill which I need to pay. It is for $800. The government mandates that before I pay the bill I deduct 2.73% from the paid amount of this bill because the vendor is non compliant.

How do I calculate how much to deduct? The rate needs to be calculated on the paid amount.

I hope I have explained that clearly. Note, the answer is not $800 x (1-0.0273).

Thanks so much

Answer 1

If $x$ is the paid amount, the deduction is $0.0273x$, which is taken off the \$800. So you must have

$$800 = x + 0.0273x = 1.0273x.$$

So

$$x=\frac{800}{1.0273} = 778.74.$$