Chapter 20, Problem 1ES

To determine

To calculate: The sales tax for a purchase price of $\text{\$237}\text{.42}$ when the sales tax rate is $\text{6\%}$.

Answer to Problem 1ES

Solution:

The sales tax for a purchase price of $\text{\$237}\text{.42}$ with the sales tax rate of $\text{6\%}$ is $\underset{\_}{\text{\$14}\text{.25}}$.

Explanation of Solution

Given Information:

The purchase price is $\text{\$237}\text{.42}$ and sales tax rate is $\text{6\%}$.

Formula used:

The formula for sales tax is given below:

$\text{sales tax=}\frac{\left(\text{purchase price}\right)\text{×}\left(\text{sales tax rate}\right)}{\text{100}}$

Where, the sales tax rate is tax per $1.00 of the purchase price or a percent of the purchase price.

Calculation:

Consider the given purchase price of $\text{\$237}\text{.42}$ and given sales tax rate $\text{6\%}$.

Therefore, the sales tax is,

$\begin{array}{c}\text{sales tax=}\frac{\left(\text{\$237}\text{.42}\right)\text{×}\left(\text{6}\right)}{\text{100}}\\ \text{= \$14}\text{.2452}\\ \approx \text{\$14}\text{.25}\end{array}$

Hence, for the given purchase price of $\text{\$237}\text{.42}$ and given sales tax rate of $\text{6\%}$, the sales tax is $\text{\$14}\text{.25}$.