Question

Groceries cost $75. The tax is 5%. Will you have enough money to pay for the groceries if you have $80. Please explain.

Answer 1

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.

For this we will firstly calculate the total cost of groceries after applying tax rate of 5% on groceries.

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, Cost of groceries after tax = Cost of groceries before tax + Amount of tax      

Amount of tax = Tax rate $\times$ Cost of groceries

                        = 5% $\times$ $75

                        = $\frac{5}{100} \times 75$ = $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.