Algebra 1 : How to find the amount of sales tax

Study concepts, example questions & explanations for Algebra 1

varsity tutors app store varsity tutors android store

Example Questions

Example Question #21 : Monetary Percentage

John is shopping for ties. He sees one he likes for $30. If the sales tax in his state is 5%, how much will John end up paying for this tie?

Possible Answers:

\(\displaystyle \$32\)

\(\displaystyle \$40\)

\(\displaystyle \$30\)

\(\displaystyle \$35\)

\(\displaystyle \$31.50\)

Correct answer:

\(\displaystyle \$31.50\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

To calculate the cost of something with sales tax, we multiple the percent tax by the original price of the item, and then add this value to the original price. This is what that looks like in this example:

\(\displaystyle 30+30(.05)=30+1.5=31.50\)

Remember to write the percent tax as a decimal when doing your calculation.

Example Question #21 : How To Find The Amount Of Sales Tax

You go shopping and your total comes to $50. There is a sales tax added on to your total. The sales tax is 7%. Find the amount of sales tax added to your total.

Possible Answers:

\(\displaystyle \$0.35\)

\(\displaystyle \$53.50\)

\(\displaystyle \$350\)

\(\displaystyle \$35\)

\(\displaystyle \$3.50\)

Correct answer:

\(\displaystyle \$3.50\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

When finding the total sales tax, we find what 7% of $50 is.  

To do this, we must first change 7% into a decimal. Move the decimal two places to the left or in other words, divide the percentage by one hundred.  

We know

\(\displaystyle 7\% = 0.07\)

Now, we multiply the two values together.  

We get

\(\displaystyle \text{sales tax} = 0.07 \cdot 50\)

\(\displaystyle \text{sales tax} = \$3.50\)

Therefore, the total amount of sales tax added to our total is $3.50.

 

Example Question #23 : Monetary Percentage

If Robb buys a new horse for $4,566 in a county with a sales tax of 5%, how much does he pay in tax?

Possible Answers:

\(\displaystyle \$4794.30\)

\(\displaystyle \$2283\)

\(\displaystyle \$256.30\)

\(\displaystyle \$228.30\)

Correct answer:

\(\displaystyle \$228.30\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

If Robb buys a new horse for $4,566 in a county with a sales tax of 5%, how much does he pay in tax?

To solve this question, begin by changing our percent into a decimal. To do so, we move the decimal point two places to the left.

\(\displaystyle 5.0\%=.05\)

Next, simply multiple the price of the horse by the sales tax:

\(\displaystyle 4566*.05=228.30\)

So Robb pays an additional $228.30

Example Question #24 : Monetary Percentage

An \(\displaystyle \$18\) sweater has \(\displaystyle 15\%\) sales tax. What is the amount of the sales tax?

Possible Answers:

\(\displaystyle \$2.70\)

\(\displaystyle \$.90\)

\(\displaystyle \$1.80\)

\(\displaystyle \$1.35\)

Correct answer:

\(\displaystyle \$2.70\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

in order to find the sales tax, we must convert the tax percentage into a decimal.

\(\displaystyle 15\%\rightarrow 0.15\)

Multiply the pre-tax cost by this value to calculate the amount of sales tax.

\(\displaystyle \$18.00\cdot 0.15=\$2.70\)

Example Question #25 : Monetary Percentage

 

With added taxes at a rate of \(\displaystyle 9.8\%\), Trent's new boat has a total cost of \(\displaystyle \$63,259.73\). What was the original sticker price of the boat before added taxes?

Possible Answers:

\(\displaystyle \$56,937.28\)

\(\displaystyle \$57,060.28\)

\(\displaystyle \$57,835.95\)

\(\displaystyle \$57,613.60\)

\(\displaystyle \$58,273.53\)

Correct answer:

\(\displaystyle \$57,613.60\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

To find the sticker price of the boat, we can set up a simple formula for tax rate where \(\displaystyle x\) represents the sticker price of the boat before taxes:

\(\displaystyle x+\frac{9.8\%}{100\%}(x)=\$63,259.73\)

\(\displaystyle x+0.098x=\$63,259.73\)

\(\displaystyle 1.098x=\$63,259.73\)

\(\displaystyle x=\frac{\$63,259.73}{1.098}=\$57,613.60\)

Example Question #22 : How To Find The Amount Of Sales Tax

Find the sales tax on a total of $30.14 if if the tax equals 7% of the total purchase.  Round to the nearest hundredths.

Possible Answers:

$28.03

$2.11

$210.98

$23.14

$21.10

Correct answer:

$2.11

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

To find the amount of sales tax on a purchase, we multiply the sales tax percent by the total amount of the purchase. We get

\(\displaystyle \text{sales tax} = 7\% \cdot \$30.14\)

\(\displaystyle \text{sales tax} = 0.07 \cdot \$30.14\)

\(\displaystyle \text{sales tax} = \$2.1098\)

The problem said to round to the nearest hundredths, so we get

\(\displaystyle \text{sales tax} = \$2.11\)

Therefore, the total amount of sales tax on the purchase is $2.11.

Example Question #27 : Monetary Percentage

A burger before sales tax is $10.  The final price is $10.60.  What is the sales tax percentage?

Possible Answers:

\(\displaystyle 6\%\)

\(\displaystyle 32\%\)

\(\displaystyle 20\%\)

\(\displaystyle 66\%\)

\(\displaystyle 16\%\)

Correct answer:

\(\displaystyle 6\%\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

In order to find the sales tax, we need to set up an equation such that the original price is added to some percent of the original price which equals to the final price of the burger.

Set up the equation.  A percent is number out of 100 parts.

\(\displaystyle \$10+ \left (\frac{x}{100} \right )(\$10) = $10.60\)

Solve for x.  Subtract 10 on both sides.

\(\displaystyle \frac{x}{100}(\$10) = $0.60\)

Simplify the left side and eliminate the dollar sign.

\(\displaystyle \frac{x}{10} = $0.60\)

Multiply by ten on both sides.

\(\displaystyle x=6\)

The sales tax is 6 percent.

The answer is:  \(\displaystyle 6\%\)

Example Question #28 : Monetary Percentage

Billy buys a candy bar.  The original price is five dollars with a twenty percent sales tax.  How much was the sales tax?

Possible Answers:

\(\displaystyle \$1.50\)

\(\displaystyle \$1\)

\(\displaystyle \$0.50\)

\(\displaystyle \$6\)

\(\displaystyle \$1.25\)

Correct answer:

\(\displaystyle \$1\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

The sales tax is the amount of sales percent taxed on the original price of the candy bar.  Multiply the sales tax percentage with the original price of the candy bar.

\(\displaystyle \$5 \times 20\%\)

The percentage can be converted to a fraction.

\(\displaystyle \$5 \times \frac{20}{100} = \$5 \times \frac{1}{5} = \$1\)

The sales tax is:   \(\displaystyle \$1\)

Example Question #21 : How To Find The Amount Of Sales Tax

Find the amount of sales tax for a two dollar candy bar if the percentage of tax rate for the candy bar is six percent.

Possible Answers:

\(\displaystyle \$2.12\)

\(\displaystyle \$0.12\)

\(\displaystyle \$0.21\)

\(\displaystyle \$0.02\)

\(\displaystyle \$1.12\)

Correct answer:

\(\displaystyle \$0.12\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

The sales tax is the original price of the candy bar multiplied by the percentage of the tax rate.

\(\displaystyle \$2 \times 6\%\)

Reconvert the percentage to a decimal by removing the percentage sign moving the decimal place of the six two spaces to the left.

\(\displaystyle \$2 \times 6\% = \$2 \times 0.06 = \$0.12\)

The sales tax is:  \(\displaystyle \$0.12\)

Example Question #30 : Monetary Percentage

You go shopping and your bill comes to $54.  The sales tax added on equals 7%.  What is the amount of sales tax added to your bill?

Possible Answers:

\(\displaystyle \$4.13\)

\(\displaystyle \$7.00\)

\(\displaystyle \$37.80\)

\(\displaystyle \$3.58\)

\(\displaystyle \$3.78\)

Correct answer:

\(\displaystyle \$3.78\)

Explanation:

How to calculate the amount of sales tax?

  1.      Convert tax percentage into a decimal by moving the decimal point two spaces to the left.
  2.      Multiple the pre-tax value by the newly calculated decimal value in order to find the cost of the sales tax.
  3.      Add the sales tax value to the pre-tax value to calculate the total cost.

Calculating sales tax at time of purchase:

In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 6\% \rightarrow 0.06\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.06\times\$2.35\)

\(\displaystyle \textup{Sales tax}=\$0.141\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$0.14\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$2.35+\$0.14\)

\(\displaystyle \textup{Total cost}=\$2.49\)

Calculating the sales tax percentage of a total:

If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.

First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.

\(\displaystyle \textup{Sales tax}=\textup{Total cost}-\textup{Pre-tax value}\)

\(\displaystyle \textup{Sales tax}=\$245.64-\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.64\)

Next, create a ratio of the sales tax to the pre-tax cost of the items.

\(\displaystyle \frac{\textup{Sales tax}}{\ \textup{Pre-tax value}} = \frac{\$25.64}{\$220.00}\)

Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.

\(\displaystyle \frac{\$25.64}{\$220.00}=\frac{\textup{Sales tax percentage}}{100\%}\)

Cross multiply and solve.

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$25.64\times 100\%\)

\(\displaystyle \$220.00\times\textup{Sales tax percentage}=\$2564.00\)

Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.

\(\displaystyle \frac{\$220.00\times\textup{Sales tax percentage}}{\$220.00}=\frac{\$2564.00}{\$220.00}\)

\(\displaystyle \textup{Sales tax percentage}=11.6545455\%\)

Round to two decimal places since our answer is in dollars and cents.

\(\displaystyle \textup{Sales tax percentage}=11.65\%\)

Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.

First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.

\(\displaystyle 11.6545455\% \rightarrow 0.116545455\)

Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.

\(\displaystyle \textup{Sales tax}=0.116545455\times\$220.00\)

\(\displaystyle \textup{Sales tax}=\$25.6400001\)

Round to two decimal places since our total is in dollars and cents.

\(\displaystyle \textup{Sales tax}=\$25.64\)

Last, add this value to the pre-tax value of the item to find the total cost.

\(\displaystyle \textup{Total cost}=\textup{Pre-tax value}+\textup{Sales tax}\)

\(\displaystyle \textup{Total cost}=\$220.00+\$25.64\)

\(\displaystyle \textup{Total cost}=\$245.64\)

Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.

Solution: 

To find the sales tax of an amount, we simply multiply the sales tax percent by the total amount.  We get

\(\displaystyle \$54 \cdot 7\%\)

\(\displaystyle \$54 \cdot 0.07\)

\(\displaystyle \$3.78\)

Therefore, the amount of sales tax added to your bill is $3.78.

Learning Tools by Varsity Tutors