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1 vote
Alan took a vacation trip to Maine, where sales tax on taxable items is 5%. In

Maine, prepared food and lodging are taxed an additional 2%, for a total of 7%
tax, while auto rentals are taxed an additional 5%, for a total of 10% tax.
Alan bought $90 worth of souvenirs, taxable at the general rate. He also spent
$420 on prepared food and lodging and $510 for a rental car, all before tax.
How much did he spend in total after tax was included?

User Foenix
by
6.8k points

2 Answers

4 votes

Answer: $1104.90

Step-by-step explanation:

Apex

User Benleung
by
6.7k points
4 votes

Answer:1105

Explanation:

Alan bought $90 worth of souvenir on which he paid 5% tax. Therefore he paid

90×(1.05)= 94.5

Then he spent $420 on prepared food on which 7% tax is charged. Therefore he paid

420×(1.07)= 449.4

Than he uses car on rent for $510 on which 10% tax is charged. Therefore he paid

510×(1.1)= 561

Therefore the total amount he paid including taxes is 561+449.4+94.5= 1104.9 or 1105 (rounding off)

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