Question

What is $420 with a 6% tax

Answer 1

Answer:   445.20 dollars

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Explanation:

There are two approaches.

The slightly longer approach will have us take 6% of 420 to get 0.06*420 = 25.20

So 25.20 is the amount of tax you pay on top of the original $420. The total bill is 420+25.20 = 445.20 dollars

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The shortcut is to multiply 420 by 1.06 to get 420*1.06 = 445.20

The 1.06 multiplier indicates an increase of 6%

We can think of it it as 1.06 = 1 + 0.06 = 100% + 6%