Question

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Determining the Final Cost of an Item
The tax rate as a percent, r, charged on an item can be determined using the formula - 1 =
r, where c is the final cost of the item and p is the price of the item before tax. Louise rewrites
the equation to solve for the final cost of the item: c = P(1 + r). What is the final cost of a $40
item after an 8% tax is applied?

Answer 1

$43.20

Explanation:

We use the formula for the final cost of the item:
`C=P(1+r)`

where r is the percent tax rate in decimal form (8% therefore translates as 0.08 for our case)

`C=P(1+r)\\c=40(1+0.08)= 40*1.08=43.2`

Therefore the final cost of the item is $43.20