Question

When calculating your final total including sales tax you must__________?

Answer 1

Multiply the total (including any discounts/sales/percentage off) and the sales tax, then add that to the total.

Explanation:

(This explains how it is calculated)

Example: If the regular price of an item is $8.95, on sale for 20% off, and the sales tax is 8%,

$8.95 - (8.95 * 0.20) = $8.95 - $1.79 = $7.16 (Multiply cost by sales percentage, then subtract that from regular cost)

$7.16 + 8% = $7.16 + (7.16 * 0.08) = $7.16 + $0.57 = $7.73 (Multiply discounted amount and sales tax, then add that amount to the discounted amount to get final cost.)

Like above, (8.95 - 20%) * 1.08 = $7.16 - 1.08 = $7.73

*Numbers used are random and not copied from any source*

Answer 2

In order to find the final total including sales tax, you must multiply the original price by the decimal that represents the tax rate + 1.00.

For instance, if the sale tax rate was 7%, then we would add .07 to 1.00 to get 1.07.

We could then multiply the original price by 1.07.