Answer:
Yes, we have enough money to pay for the groceries.
Step-by-step explanation:
We are given that Groceries cost $75. The tax rate is 5%.
We have to check that will the amount of $80 enough to pay for the groceries or not.
<em>For this we will firstly calculate the total cost of groceries after applying tax rate of 5% on groceries. </em>
Cost of groceries after applying tax rate is given by;
Since we know that by applying a tax on any item it's cost gets increased.
So, <u>Cost of groceries after tax</u> = Cost of groceries before tax + Amount of tax
Amount of tax = Tax rate Cost of groceries
= 5% $75
= = $3.75
So, Cost of groceries after tax = $75 + $3.75 = $78.75
Since we have an amount of $80 with us which means that we are able to buy the groceries after giving tax on it as $78.75 < $80.
Therefore, yes we have enough money to pay for the groceries.
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