Question

Compute the sales tax on the following transactions. An article retails for $37.50. The city sales tax is 6%, and the federal excise tax is 8%. How much does the article cost altogether?

Answer 1

First you must find the rate of both taxes. Since its 8% and 6%, you must add them both together, then divide them by 100.

14/100 = .14

Then for both rates you must add 1 because it is a tax increase.

1 + .14 = 1.14

Finally times 37.50 with 1.14

37.50(1.14) = 42.75

$42.75 is the answer.

Answer 2

The article will cost altogether:

$ 42.75

Explanation:

It is given that:

The retail price of the article is: $ 37.50.

Also, the article will hold a city tax of 6% and a federal excise tax of 8%.

Hence, the total percent tax on article is: 6+8=14%

This means that the cost price of the article is:

Retail Price of article+14% of retail price.

= 37.50+14% of 37.50

= 37.50+0.14×37.50

= 37.50+5.25

= 42.75

Hence, the article will cost: $ 42.75