Question

There is a 2.45% sales tax added to each price. Which means the same? a.Customers pay 1.0245 times the price.

b.Customers pay 97.55 times the price.
c. Customers pay the price plus $2.45. Customers pay 0.0245 times the price.

Answer 1

a.Customers pay 1.0245 times the price. This means that not only do they pay the price for what they buy, but paying 1.0245 times the price includes the tax price as well as the price you are already paying.

Answer 2

price + sales tax = total price

sales tax = price*.0245

price + price *.0245 = total price

factor out the price

price (1+.0245) = total price

price (1.0245) = total price

a.Customers pay 1.0245 times the price.