Algebra 1 : How to find the amount of sales tax

Study concepts, example questions & explanations for Algebra 1

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Example Questions

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

A new computer costs $600 plus 7% sales tax. How much is the cost of the computer with added tax?

Possible Answers:

\displaystyle \$607

\displaystyle \$42

\displaystyle \$642

\displaystyle \$636

Correct answer:

\displaystyle \$642

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

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:

\displaystyle \small 0.07\times 600\ = 42

Next, add the amount of tax to the price of the computer:

\displaystyle \small 600+42=642

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

A couple buys a house for a total price of $319,000. If the total price includes a 6.75% sales tax, how much does the house cost before tax?

Possible Answers:

\displaystyle \$190,477.76

\displaystyle \$280, 284.37

\displaystyle \$298,829.04

\displaystyle \$296,301.14

\displaystyle \$340,532.50

Correct answer:

\displaystyle \$298,829.04

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

We can convert 6.75% to a decimal by dividing by 100.

If \displaystyle \small x is the price of the house, then the sales tax is \displaystyle 0.0675x. The price of the house and the sales tax add up to $319,000.

\displaystyle x + 0.0675x = 319,000

Combe terms on the left.

\displaystyle 1.0675x = 319,000

Finally, divide both sides by 1.0675.

\displaystyle x = \frac{319,000}{1.0675}=298,829.04 

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

How much should someone be charged in sales tax on a $32 purchase if the tax rate is 7%?

Possible Answers:

\displaystyle \$2.24

\displaystyle \$34.24

\displaystyle \$35.76

\displaystyle \$2.57

\displaystyle \$4.57

Correct answer:

\displaystyle \$2.24

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

Do not overthink a problem like this.  All that the question is asking is, "How much is 7% of $32."  This can be rewritten as:

\displaystyle t = 0.07 * 32 = 2.24

Therefore, the answer to the question is $2.24.

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

The sales tax where Mary lives is 7.5%.  How much will Mary pay in total for a shirt that sells for $44?

Possible Answers:

\displaystyle \$77

\displaystyle \$47.30

\displaystyle \$49.30

\displaystyle \$4.30

\displaystyle \$3.30

Correct answer:

\displaystyle \$47.30

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

There are two ways to do this.  The easiest way is to realize that the total cost is 107.5% of the price of the shirt.  This is like saying, "What is 107.5% of 44?"  

This can be rewritten as an equation:

\displaystyle x = 1.075 * 44 = 47.3

You can also calculate the taxes first by taking 7.5% of 44:

\displaystyle t = 0.075 * 44 = 3.3

Add this to 44 to get a total cost of $47.30.

Either method will work, but the first is quicker.

Example Question #3 : How To Find The Amount Of Sales Tax

If the sales tax on an order is 4% and the final cost after taxes is $76.96, what is the pre-tax cost of the order?

Possible Answers:

\displaystyle \$2.96

\displaystyle \$74

\displaystyle \$75.64

\displaystyle \$3.08

\displaystyle \$80.04

Correct answer:

\displaystyle \$74

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

There are two ways that you could set up this problem.  For the first way, you would ask yourself, "$76.96 is 104% of what original price?"  This would be represented as:

\displaystyle 76.96 = 1.04 * x

Likewise, you could start by asking yourself, "A 4% increase of what price ends up at $76.96?" This would be translated as:

\displaystyle 0.04 * x + x = 76.96

Note that this is the same as the equation above.

Solve the first equation by dividing both sides by 1.04.  This gives you $74.

Example Question #3 : How To Find The Amount Of Sales Tax

If the amount of sales tax on an order is 8% and its post-tax cost is $59.40, what is the amount of tax included in the post-tax cost?

Possible Answers:

\displaystyle \$55

\displaystyle \$64.15

\displaystyle \$3.75

\displaystyle \$4.40

\displaystyle \$4.75

Correct answer:

\displaystyle \$4.40

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

The easiest way to solve this problem is by realizing that you can apply an 8% tax to an amount by multiplying that amount by 108% or 1.08.  You could thus say to yourself, "$59.40 is 108% of what original amount?"  This can be rewritten as the following equation:

\displaystyle 59.4 = 1.08 * x

Dividing both sides by 1.08, you get \displaystyle x = 55.

Now, be careful!  The question asks NOT for the original price but for the tax amount, or \displaystyle 59.4 - 55 = 4.4.

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

Jerry paid $135.04 after tax for $125.62 worth of groceries. What is the sales tax rate, to the nearest tenth of a percent, where he bought the groceries?

Possible Answers:

\displaystyle 9.4 %

\displaystyle 7.5 %

\displaystyle 7.0 %

\displaystyle 8.5 %

\displaystyle 8.0 %

Correct answer:

\displaystyle 7.5 %

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

The amount of sales tax Jerry paid was \displaystyle \$135.04 - 125.62 = \$ 9.42.

The sales tax is given as a percent of the original price of the groceries before tax, so we calculate $9.42 as a percent \displaystyle P of $125.62 with this equation:

\displaystyle \cdot \frac{P}{100} = \frac{9.42}{125.62}

 

\displaystyle P = \frac{9.42}{125.62} \cdot 100 \approx 7. 5

The sales tax rate is 7.5%.

Example Question #2 : How To Find The Amount Of Sales Tax

The sales tax in Williamsburg is 11%. What would the tax be on a purchase of $69.60? 

Possible Answers:

\displaystyle \$6.90

\displaystyle \$76.56

\displaystyle \$7.56

\displaystyle \$7.66

Correct answer:

\displaystyle \$7.66

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

To find the tax, multiply the pre-tax total times .11 (the decimal form of 11%). The result is $7.656. Since we're dealing with money, round it to the hundredths place, which gives you an answer of $7.66.

Example Question #1 : 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?

Possible Answers:

\displaystyle 4.70\%

\displaystyle 4.10\%

\displaystyle 6.00\%

\displaystyle 3.75\%

\displaystyle 5.25\%

Correct answer:

\displaystyle 4.70\%

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

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:

\displaystyle \frac{19.50}{415} (100) = 4.70

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?

Possible Answers:

\displaystyle \$57.00

\displaystyle \$5.70

\displaystyle \$100.70

\displaystyle \$89.30

Correct answer:

\displaystyle \$100.70

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      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.

\displaystyle 6\% \rightarrow 0.06

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.06\times\$2.35

\displaystyle \textup{Sales tax}=\$0.141

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$0.14

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$2.35+\$0.14

\displaystyle \textup{Total cost}=\$2.49

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.

\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}

\displaystyle \textup{Sales tax}=\$245.64-\$220.00

\displaystyle \textup{Sales tax}=\$25.64

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}

Cross multiply and solve.

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%

\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}

\displaystyle \textup{Sales tax percentage}=11.6545455\%

Round to two decimal places since our answer is in dollars and cents.

\displaystyle \textup{Sales tax percentage}=11.65\%

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.

\displaystyle 11.6545455\% \rightarrow 0.116545455

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\displaystyle \textup{Sales tax}=0.116545455\times\$220.00

\displaystyle \textup{Sales tax}=\$25.6400001

Round to two decimal places since our total is in dollars and cents.

\displaystyle \textup{Sales tax}=\$25.64

Last, add this value to the pre-tax value of the item to find the total cost.

\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}

\displaystyle \textup{Total cost}=\$220.00+\$25.64

\displaystyle \textup{Total cost}=\$245.64

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:

\displaystyle \small 0.07\times 600\ = 42

Next, add the amount of tax to the price of the computer:

\displaystyle \small 600+42=642

Calculate the amount of sales tax:

\displaystyle 6\ percent=0.06

\displaystyle 95\times 0.06=5.70

Add the amount of sales tax to the original price:

\displaystyle 95+5.70=100.70

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