Question

The tax rate as a percent, r, charged on an item can be determined using the formula 100( – 1) = r, where c is the final cost of the item and p is the price of the item before tax. Louise rewrites the equation to solve for the final cost of the item: c = p(1 + ). What is the final cost of a $40 item after an 8% tax is applied?

Answer 1

The question is asking us to calculate the final cost of the item after the tax is applied. The price of item before the tax is: P = $40 and the tax rate as a percent is 8%. It means that r = 0.08. And the formula is: C = P * ( 1 + r ). Finally: C = $40 * ( 1 + 0.08 ) = $40 * 1.08 = $43.20. Answer: The final cost is $43.20.