Question

Michael bought groceries and spent $46.85 before including the sales tax of 7%. What is the total purchase price after tax?

Answer 1

We are told that a 7% tax is applied to the original sales price, in order to determine the tax amount we just have to multiply the original price ($46.85) by the tax percentage (0.07 as 7% in decimal form), then we get:

Tax amount = 0.07×46.85 ≈ 3.28

By adding the tax amount to the original price we should get the final price, like this:

Total purchase price = 46.85 + 3.28 = 50.13

Then, the total purchase price after tax is $50.13