ACT Math : Sales tax

Study concepts, example questions & explanations for ACT Math

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Example Questions

Example Question #1 : How To Find The Amount Of Sales Tax

Beth purchased $21.25 worth of groceries. The sales tax rate is 7.5%. What was her total bill?

Possible Answers:

$23.79

$21.93

$22.84

$23.41

$22.11

Correct answer:

$22.84

Explanation:

The tax is calculated by 0.075 * 21.25 = 1.59375 or $1.59. So the total bill is the cost of items purchased plus tax, which is $21.25 + $1.59 = $22.84.

Example Question #1 : How To Find The Amount Of Sales Tax

The last week of August is tax-free week.  If the standard tax rate is 8.25%, how much money would a shopper save buying a $50 dress and a $30 pair of shoes during tax free week?

Possible Answers:

$4.13

$7.25

$6.60

$2.47

$8.00

Correct answer:

$6.60

Explanation:

Tax = Total Cost * 0.0825 = (50 + 30) * 0.0825 = (80) x 0.0825 = 6.6 = $6.60

Example Question #1 : How To Find The Amount Of Sales Tax

If a stick of deodorant costs $4.29 with a sales tax of 8.75%. What will the total cost of the item be?

(round to the nearest cent)

Possible Answers:

$4.76

$4.66

$4.37

$6.47

$4.67

Correct answer:

$4.67

Explanation:

To solve for the tax charged multiply 0.0875 by the sales price of $4.29.

This is $0.375375. Add this to the original amount of $4.29.

The answer is 4.665375. Rounded to the nearest cent is $4.67

Example Question #1 : How To Find The Amount Of Sales Tax

On a grocery shopping trip you spent $15 on meat, $5 on cheese, and $25 on produce.  If the total bill was $48.15, what is the rate of sales tax on the food?

Possible Answers:

0.7%

6.5%

7.5%

0.75%

7%

Correct answer:

7%

Explanation:

Tax = Total Bill - Cost of Food = 48.15 – (15 + 5 + 25) = $3.15

Percentage of Tax = Tax / Cost of Food = 3.15/ (15 + 5 + 25) = 3.15 / 45 = 0.07 = 7%

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?

Possible Answers:

Correct answer:

Explanation:

Total cost = $120 + $45 + $75 = $240

Cost of Sales Tax = 8.25% ($240) = 0.0825 ($240) = $19.80

Example Question #6 : How To Find The Amount Of Sales Tax

Jim buys a pair of shoes for , including tax. If the shoes were priced at , what percentage tax rate was he charged?

Possible Answers:

%

Correct answer:

%

Explanation:

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 #2 : 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.

Possible Answers:

Correct answer:

Explanation:

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.)

Possible Answers:

Correct answer:

Explanation:

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?

Possible Answers:

$54.00

$50.00

$58.00

$8.00

$4.00

Correct answer:

$4.00

Explanation:

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?

Possible Answers:

Correct answer:

Explanation:

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:

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