Question

A boat that sold for $12,500 had a sales tax of $562.50. How much is the tax on a boat that sells for $9,550?

Answer 1

$429.75

Explanation:

First, find the tax rate on the sale of the boat: Let r represent that rate. Then,

$12,500r = $562.50. Solving for r, we get r = $562.50 / $12,500 = 0.045

The tax rate is 0.045, or 4.5%.

Applying this tax rate to a boat selling for $9,550:

0.045($9,550) = $429.75. This is the amount of tax on the 2nd boat.