Question

An item is priced at $13.85. If the sales tax is 4%, what does the item cost including sales tax?

Answer 1

The most realistic answer is A.

You can start by taking 13.85 and finding 4% of that number. You get 0.554, but you round it to the nearest hundredth making it 0.55. Yes the tax is 0.55 cents, but the problem is asking the price including sales tax. So you add 0.55 to 13.85 and get 14.40.