All ACT Math Resources
Example Questions
Example Question #1 : How To Find The Amount Of Sales Tax
Regular sales tax is . Saturday is a tax free day that applies to clothes. You want to buy a pair of jeans that are , a pair of shoes that are , and a new shirt that costs . How much money will you save if you want to go shopping on Saturday?
Total cost = $120 + $45 + $75 = $240
Cost of Sales Tax = 8.25% ($240) = 0.0825 ($240) = $19.80
Example Question #82 : Percentage
Jim buys a pair of shoes for , including tax. If the shoes were priced at , what percentage tax rate was he charged?
%
%
Step 1: Find the amount of tax tax paid
Jim paid including tax for shoes that were pre-tax. Therefore:
Jim paid in tax.
Step 2: Figure out the tax rate (What percentage of is ?)
Set up a proportion and solve for :
Therefore, Jim paid an tax on the shoes he purchased.
Example Question #3 : How To Find The Amount Of Sales Tax
If a given locality charges sales tax, what is the total price for purchasing an item that costs before tax? Round to the nearest cent.
If a given locality charges sales tax, what is the total price for purchasing an item that costs before tax?
First, convert to . Then, multiply this by to get dollars. Add this to the original price to get . This rounds to .
Another way to do this is to multiply to get the same amount.
Example Question #8 : How To Find The Amount Of Sales Tax
Sarah is buying a shirt that she likes. The shirt costs but there is an sales tax. How much does Sarah pay for the shirt in total, after sales tax is added? (Round to the nearest cent.)
To find how much total is payed for an item after sales tax, conver the sales tax to a decimal and add it to 1, then multiply that total to the price of the item.
Example Question #1 : How To Find The Amount Of Sales Tax
Before tax is calculated, Billy's bill at a restaurant is $50.00. If sales tax is 8%, how much tax does he pay?
$4.00
$50.00
$58.00
$8.00
$54.00
$4.00
You evaluate $50.00 x (0.08) = $4.00
Example Question #10 : How To Find The Amount Of Sales Tax
The total cost of a new boat, inclusive of sales tax, was . If the sales tax rate is , what was the original price of this boat before sales tax?
The easiest way to do this is to write out the equation as though you were solving from the original price to find the final price. You would know that:
or
Solving for , you get:
Example Question #1 : How To Find Simple Interest
Ben and Sam are starting a furniture design business. In order to build their shop, they borrow $150,000 from their neighborhood bank. The interest rate on the loan is 6%. How much interest do they have to pay?
$3000
$9000
$12,000
$1500
$6000
$9000
Simple interest = Amount borrowed x Interest rate =
150,000 x 6% = 150,000 x .06 = $9000
Example Question #1 : How To Find Simple Interest
Amy recently opened a new credit card. In her first month, expenditures totaled $500 and she was not charged any interest. Amy paid $80 from her first month's bill. The second month, Amy spent another $60 on her credit card. This time, she was charged 5% interest on her total unpaid balance. How much interest was Amy charged?
$32.00
$48.00
$24.00
$12.00
$4.80
$24.00
This requires us to keep track of Amy's expenses. After her first month, the unpaid balance was 500 - 80 = $420.
However, after the second month, her unpaid balance went up to $480.
5% of 480 can be obtained by multiplying
480 x .05 = 24
Example Question #1 : How To Find Simple Interest
Ella loaned Frances $10,000 to start a business. They agreed that the loan would be paid back in five years, with a simple interest rate of 9%. When the loan is paid back in full, what will be the total amount that Ella collects?
The simple interest formula is given by I = PRt where I = interest, P = principal, R = rate, and t = time.
Here, I = 10,000 * 0.09 * 5 = $4,500.
The total repayment amount is the interest plus the principal, so $4,500 + $10,000 = $14,500 total repayment.
Example Question #2 : How To Find Simple Interest
An account accrues of simple interest during a fifteen year period. If this is accrued yearly at a rate of , what was the initial balance of the account at the beginning of this period? Round to the nearest dollar.
Simple interest has the formula of:
, where is the starting balance, is the interest rate, and is the number of accrual periods.
For our data, this is simply:
Simplifying, we get:
Divide both sides by to get: