Answer:
The tax rate is approximately 6.75%
Step-by-step explanation:
In the question it is required to find the amount added to the total cost as tax
The given parameters are;
The Manufacturer's Suggested Retail Price, MSRP, of the automobile, MSRP = $27,853.00
The dealer prep charge, PPC = $278.50
The title fee, T = $25.00
The cost of the options added (leather, fridge, etc.), Op = $2,375.50
The total cost, C = $32,591.22
Let 'x' represent the the tax rate,
Therefore, we have;
32,591.22 = x × (27,853 + 278 + 2,375.5) + 27,853 + 278 + 2,375.5 + 25
32,591.22 = 30,506.5·x + 30,531.5
32,591.22 - 30,531.5 = 30,506.5·x
∴ 2,059.72 = 30,506.5·x
x = 2,059.72/30,506.5 = 0.06751741432 ≈ 0.0675
The tax rate, x ≈ 0.0675 = 6.75%
