I am trying to figure out what payment is necessary to cover both the payment processing fees and the state's gross receipts tax.
The payment processing fee is $0.30 plus 2.9% of the purchase price plus gross receipts tax and the gross receipts tax is 1.5% of the purchase price plus the payment processing fee.
The variables are:
- $x$ = purchase price
- $y$ = necessary payment
- $a$ = payment processing fee
- $b$ = gross receipts tax
The formulas are:
- $a=(x+b) \cdot 0.029+0.3$
- $b=(x+a) \cdot 0.015$
The equation grows infinitely since I can't solve $a$ without solving $b$ and I can't solve $b$ without solving $a$.
I don't remember what this type of math is called so I can't research how to solve for $y$.