Question

Find the amount of tax and the tax rate. Round to two decimal places

Cost of item: $122

Selling price: $137.17

Tax amount: $

Tax rate:

Answer 1

The tax amount is 15.17$

The tax rate is 12.4%.

Explanation:

First we subtract the cost from the selling price.

137.17 - 122 = 15.17

We have found the tax amount, now for the tax rate.

If tax rate is x, then

122 * x = 137.17

Divide both sides by 122 to get

x = 137.17/122 = 1.124, or .124.

Then convert into percentage by moving the decimal to the right 2 times.

.124 = 12.4%

Hope this helps you

Answer 2

Tax amount: $15.17

Tax rate: 12.44%

Explanation:

Tax amount:

Selling Price - Cost of Item = Tax Amount

$137.17 - $122 = $15.17

Tax rate:

Tax Rate * (Item Price) = Total Cost

Tax Rate * $122 = $137.17

Divide both sides by $122 to isolate the Tax Rate

Tax Rate ≅ 1.12434 (Subtract one and multiply by 100 to get the actual Tax Rate)

Tax Rate = 12.44%