Algebra 1 : Monetary Percentage

Study concepts, example questions & explanations for Algebra 1

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Example Questions

Example Question #11 : Monetary Percentage

If Jane buys four cans of soda at $1.56 each and pays $6.93 total, what is the percentage of the sales tax?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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?

Possible Answers:

Correct answer:

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.

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:

Example Question #19 : Monetary Percentage

A magazine has a sticker price of . After tax, the total cost is . What is the percent tax rate on this item?

Possible Answers:

Correct answer:

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.

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 we want to find out the total tax amount:

Next, we divide the amount in tax by the initial sticker price and multiply by that value by  to get the percent tax rate:

Example Question #20 : Monetary Percentage

A new car off the lot has a sticker price of  but after taxes, the total price of the car comes out to . What is the percent tax rate for the car?

Possible Answers:

Correct answer:

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.

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 step would be to divide the tax amount by the original sticker price:

Next, multiply the given decimal by  to get a percent value:

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