You plan to buy $12,000 in computers at a local chain store. There are two stores located about the same distance from your offi
ce but in different cities with different tax rates. One city has a tax rate of 7% and the other has a tax rate of 8.5%. What percent can you save by going with the lower tax rate? Round your answer to the nearest tenth of a percent, if necessary.
Lets calculate the taxes that would been payed at each city: city1 = 12000(7%) = 12000(0.07) = 840 city2 = <span>12000(8.5%) = 12000(0.085) = 1020 So if you go to city1 instead of city2, you save 1020 - 840 = 180 So you would save $180 from $12000, that is: 180 out of 12000 = 180/12000 = 0.015 and that is the 1.5%, that is what you could save</span>
