Question

A music store charges $18.50 for a CD plus a 0.5% city tax and a separate 4% state tax.

Answer 1

A) The equation will become: 18.50 (1.005) + 18.50 (0.04)= 19.3325
Which can be rounded to 19.33
b) 18.50 (1.04)-18.50(1.005)= 0.6475
Which can be rounded to 0.65

Therefore your answer is Number 1)