Question

Sam has to pay a 15% tax on a boat that cost him $500. He believes he can determine the tax he owes using the calculation: 15 x 5

Answer 1

$75

Explanation:

Cost = $500

Sam has to pay a 15% tax

To compute his tax, we use the step outlined bellow

tax= 15/100*500

tax= 0.15*500

tax=$75

Hence his tax is $75