An item costs $4 before tax and $4.32 after sales tax. What is the sales tax rate?

ringearV

ringearV

Answered question

2021-03-11

An item costs $4 before tax and $4.32 after sales tax. What is the sales tax rate?

Answer & Explanation

Margot Mill

Margot Mill

Skilled2021-03-12Added 106 answers

Given that an item costs $4 before the tax and $4.32 after sales tax. Therefore, the sales tax is
4.324=0.32
We need to find the sales tax rate.
The formula for sales tax is given by
Sales tax percentage   =Sales tax/Pretax value×100%
Plugging the values in the above formula we have
Sales tax percentage  = 0.324×100%=8%
Therefore, the sales tax rate is 8%.
The sales tax rate 8%. ​

Jeffrey Jordon

Jeffrey Jordon

Expert2021-08-10Added 2605 answers

Answer is given below (on video)

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