Question

The price of a television before tax is $1625.00. The total price with tax is $1,803.75. What is the rate of the sales tax?

Answer 1

Answer:

11%

Step-by-step explanation:

A sales tax is placed on goods and services once the buyer and seller  agree on what the exchange of currency is.

In this case you take the tax on the 1625 and not the 1803.75.

The buyer agreed to buy the item for 1625 and the seller agreed to sell it for that amount. So the tax goes on 1625.

Tax amount = total price - selling price

Tax amount = 1803.75 - 1625

Tax amount = 178.75

That's not what you want. You want the % of the tax.

% Tax = (Tax Amount / Selling Price) * 100

% Tax = (178.75 / 1625) * 100

% Tax = 0.11 * 100

% Tax = 11%                        Answer