calculating gross from net amount

[cocug]

Hello,

I'm turning to you with a very basic question.

Suppose I have received a net payment of 100 euros and want to calculate the gross amount of it so that I can pay the tax to the tax authority. Let's say the tax rate is 16% in my country.

According to a formula I found on internet the way to go about finding out the gross amount is to multiply the net amount by 1 + VAT percentage (so in my case, this means multiplying by 1.16 if VAT is 16%). The gross amount is, thus, 116 euros.

However if I want to verify this calculation, I cannot do so.

if 116 euros is ... 100%
then 1% is .........1,16,
and 16% is........18,56 euros,
and if I deduct 18,56 euros from the gross 116 euros, that's just 97.44 euros, less then the initial net 100 euros I had.

There's clearly something wrong, but I have no idea what I am net getting here.

 

[MathLover1]

net payment of 100 euros
the tax rate is 16% =0.16
find the gross amount


let the gross amount be x
the gross amount - tax=net payment
x-0.16x=100
0.84x=100
x=100/0.84
x=119.05

so the gross amount is 119.05

 

[nycmathguy]

net payment of 100 euros
the tax rate is 16% =0.16
find the gross amount


let the gross amount be x
the gross amount - tax=net payment
x-0.16x=100
0.84x=100
x=100/0.84
x=119.05

so the gross amount is 119.05

You even know foreign currency. Cool.

 

[MathLover1]

You even know foreign currency. Cool.

I am from Europe.

 

[nycmathguy]

I am from Europe.

Yes, I forgot. Check out the three remaining threads in the Geometry and Trigonometry forum.