Jerry bought a bottle of perfume as a gift for his wife. The perfume cost $92 before tax.
If the total price including tax was $98.90, find the tax rate.
Answer (2)
Calculating Sales Tax and Total Cost
To find the tax rate, you need to know the total price paid including tax and the original price before tax. Jerry bought a bottle of perfume for $92, and the total price he paid after including tax was $98.90. To calculate the tax rate, you would subtract the original price from the total price and then divide by the original price.
Subtract the original price ($92) from the total price ($98.90) to find the amount of tax paid, which is $98.90 - $92 = $6.90.
To find the tax rate, you divide the amount of sales tax by the original price: $6.90 / $92 = 0.075.
Finally, to express the tax rate as a percentage, multiply by 100: 0.075 * 100 = 7.5%.
This is how you calculate the sales tax rate using the original cost of the item and the total cost after tax.
The sales tax rate for Jerry's perfume purchase is 7.5%. This is calculated by finding the difference between the total price and the original price, then dividing by the original price and converting to a percentage. In this case, the sales tax paid was $6.90, leading to a 7.5% tax rate.
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