Chapter A.1, Problem 1E

A college student buys a car and pays a 6% sales tax on the $21,599 sale price. How much sales tax did the student pay?

To determine

To calculate: The sales tax paid by the student for a car.

Answer to Problem 1E

Solution:

The sales tax paid by the student for a car is, $\underset{\_}{\$1295.94}$.

Explanation of Solution

Given Information:

The sales price of a car, $\$21,599$.

Sales tax in percentage paid by student, $6\%$.

Formula used:

$\text{Sales tax }=\text{ percentage }\times \text{ sales price}$

Calculation:

From the question,

Sales price is $\$21,599$

The percentage of sales tax is $6\%$

Now, on using formula, $\text{Sales tax }=\text{ percentage }\times \text{ sales price}$ as:

Sales tax = $6\%$ of sales price.

$\begin{array}{l}=\frac{6}{100}\times \$21,599\\ =0.06\times \$21,599\\ =\$1,295.94\end{array}$

Hence, sales tax paid by the student is $\$1295.94$