All Algebra 1 Resources
Example Questions
Example Question #3 : How To Find The Amount Of Sales Tax
The sales price of a bicycle is $415. If a customer paid a total of $434.50 for this bicycle, what was the sales tax percentage?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
The difference between the total price ($434.50) and the sales price ($415) is the tax ($19.50). To find the sales tax as a percentage of the sales price, divide the sales tax by the sales price and then multiply by 100:
Example Question #1 : How To Find The Amount Of Sales Tax
In Pennsylvania, vendors must impose a 6% sales tax on non-essential items. If a Blu-Ray player costs $95, and is a non-essential item, how much will the total price be including sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
First, calculate the amount of sales tax by multiply the percent tax times the total cost:
Next, add the amount of tax to the price of the computer:
Calculate the amount of sales tax:
Add the amount of sales tax to the original price:
Example Question #1 : Equations Based On Word Problems
If Jane buys four cans of soda at $1.56 each and pays $6.93 total, what is the percentage of the sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
If each soda cost $1.56 and Jane bought four, the total for the sodas was:
And she paid $6.93
The sales tax was 11%.
Example Question #12 : How To Find The Amount Of Sales Tax
A boy walks into a store to buy a bulk size candy bar. The boy was ready to pay $20 on the price tag, but the store charged him $22.60. What was the store's sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
The total price is the original price added with some percentage of the original price.
Write the mathematical equation representing this case.
Solve for to get the percent.
The store charged the boy in sales tax.
Example Question #13 : How To Find The Amount Of Sales Tax
Angela buys an apple for , a loaf of bread for , and a pack of paper clips for . The sales tax is , and food items are not taxed. What does she pay in total, including sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
Find the total of the food items, which are not taxed: $0.84+$2.03=$2.87
Since the paper clips are taxed, find the price of the pack including sales tax: $2.17 multiplied by 1.07 is $2.32.
The total is $5.19.
Example Question #14 : Monetary Percentage
Brendan recently moved from Wisconsin to Florida, one of the biggest adjustments is the higher sales tax. If the sales tax in Florida is and he buys a luggage rack for his bicycle for (before tax), how much does he pay in sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
Brendan recently moved from Wisconsin to Florida, one of the biggest adjustments is the higher sales tax. If the sales tax in Florida is 7.5% and he buys a luggage rack for his bicycle for $76.45(before tax), how much does he pay in sales tax?
Finding the amount of sales tax is actually quite straightforward when we have a tax rate or percent.
In this case, we have a sales tax of , this means that for every dollar spent, we pay an additional seven and a half cents in sales tax. To calculate the sales tax, simply change the percent to a decimal and then multiply the decimal by the cost of the item.
So Brendan pays in sales tax
Example Question #15 : Monetary Percentage
A new pair of shoes has a sales price of and is taxed at a rate of . What is the total price of the shoes with tax included?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
The price after tax can be determined by finding of and adding that value to the original price:
Solve.
Example Question #16 : Monetary Percentage
A new economy car has a sticker price of before tax. With taxes, the total price comes out to . What is the tax rate for this car?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
We can determine the tax rate by dividing the difference of the taxed and untaxed price over the original untaxed price of the car:
Solve.
Example Question #17 : Monetary Percentage
If the sales tax is and the price of a new radio is before taxes, what is the total price including the sales tax?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
The amount in tax can be calculated and added to the sales price as such:
Add the two values together.
Example Question #18 : Monetary Percentage
Fireworks retail for universally the same price. On tribal lands where US taxes don't apply, a pack of sparklers costs $5.00, and the same pack of sparklers costs $7.17 anywhere else. What is the percent tax on fireworks?
How to calculate the amount of sales tax?
- Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
- Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
- Add the sales tax value to the pre-tax value to calculate the total cost.
Calculating sales tax at time of purchase:
In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
is the untaxed price, while is the price with tax. The difference between the two values is the cash value of the sales tax:
The tax amount can be divided by the original price and then multiplied by to determine the percent tax rate: