1. **State the problem:** You have a gross amount of 1708 and a tax rate of 13.5%. You want to find the net amount (amount before tax) and the tax paid. 2. **Formula used:** - Gross amount = Net amount + Tax amount - Tax amount = Net amount \times Tax rate So, Gross = Net + Net \times Tax rate = Net \times (1 + Tax rate) 3. **Calculate the net amount:** $$\text{Net} = \frac{\text{Gross}}{1 + \text{Tax rate}} = \frac{1708}{1 + 0.135} = \frac{1708}{1.135}$$ 4. **Simplify the fraction:** $$\text{Net} = \frac{1708}{1.135} \approx 1504.85$$ 5. **Calculate the tax paid:** $$\text{Tax} = \text{Gross} - \text{Net} = 1708 - 1504.85 = 203.15$$ **Final answers:** - Net amount = 1504.85 - Tax paid = 203.15