Sales tax and commissions are applications of percent in our everyday lives.
To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price. The result is the total cost—this is what the customer pays.
The sales tax is calculated as a percent of the purchase price.
Sales Tax: An additional amount of money calculated as a percentage of the purchase price of goods and services.
Tax Rate: The percentage that determines the amount of sales tax to be added.
Purchase Price: The original price of the item before tax.
Total Cost: The final price after adding the sales tax to the purchase price.
Calculate the Amount of Sales Tax: Convert the sales tax rate from a percentage to a decimal by dividing by [latex]100[/latex]. Multiply the purchase price by the decimal sales tax rate.
Calculate the Total Cost: Add the amount of sales tax to the purchase price.
Cathy bought a bicycle in Washington, where the sales tax rate was [latex]6.5\%[/latex] of the purchase price. What was…
the sales tax and
the total cost of a bicycle if the purchase price of the bicycle was [latex]$392[/latex]?
Identify what you are asked to find.
What is the sales tax?
Choose a variable to represent it.
Let [latex]t=[/latex] sales tax.
Write a sentence that gives the information to find it.
The sales tax is [latex]6.5\text{%}[/latex] of the purchase price.
Translate into an equation. (Remember to change the percent to a decimal).
Simplify.
[latex]t = 25.48[/latex]
Check: Is this answer reasonable?
Yes, because the sales tax amount is less than [latex]10\text{%}[/latex] of the purchase price.
Write a complete sentence that answers the question.
The sales tax is [latex]\text{\$25.48}[/latex].
Identify what you are asked to find.
What is the total cost of the bicycle?
Choose a variable to represent it.
Let [latex]c=[/latex] total cost of bicycle.
Write a sentence that gives the information to find it.
The total cost is the purchase price plus the sales tax.
Translate into an equation.
Simplify.
[latex]c = 417.48[/latex]
Check: Is this answer reasonable?
Yes, because the total cost is a little more than the purchase price.
Write a complete sentence that answers the question.
The total cost of the bicycle is [latex]\text{\$417.48}[/latex].
Evelyn bought a new smartphone for [latex]\text{\$499}[/latex] plus tax. She was surprised when she got the receipt and saw that the tax was [latex]\text{\$42.42}[/latex]. What was the sales tax rate for this purchase?
Identify what you are asked to find.
What is the sales tax rate?
Choose a variable to represent it.
Let [latex]r=[/latex] sales tax.
Write a sentence that gives the information to find it.
