Question

Gain finds a skirt that she likes at the store for $45.99. If the tax rate is 5.8%, how much will the shirt cost in all

Answer 1

$48.66

Explanation:

The price of a good is the base cost plus tax. We are given the cost of the skirt, so all we need is the amount of tax. To find it, we multiple the cost of the skirt by the tax rate:

45.99 * 0.058 = 2.67

We now add the tax to the cost of the skirt:

45.99 + 2.67 = 48.66

As you can see, we are adding the price of the skirt to 5.8% of the skirt's price, so we can also solve the problem by simply multiplying the cost by 1.058 as shown below:

45.99 * 1.058 = 48.66