Question

A boat that sold for $12,500 had a sales tax of $562.50. How much is the tax on a boat that sells for $9,550?

Answer 1

Answer:

$429.75

Step-by-step explanation:

First, find the tax rate on the sale of the boat:  Let r represent that rate.  Then,

$12,500r = $562.50.  Solving for r, we get r = $562.50 / $12,500 = 0.045

The tax rate is 0.045, or 4.5%.

Applying this tax rate to a boat selling for $9,550:

0.045($9,550) = $429.75.  This is the amount of tax on the 2nd boat.