2.36 ÷ $32.00 = 0.0735. Sales tax was charged by the department store at a rate of 7.375%.
Answer: Mr. Smith should pay the department store $32.00 plus $2.36 in sales tax for a total bill of $34.36.
Sales tax rates vary from state to state. Retail sales tax rates are set by the individual states in the United States and vary from 0 to 9% of the sales price. Sales tax is usually the responsibility of the merchant to collect and submit to the state, and stated separately (or implicitly added at the time of the sale) to consumers. Let's look at some
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