Question

A certain car costs $6,595 before taxes are added. Taxes are $460 and license tags cost $55. What is the overall tax rate (to the nearest tenth)?

A) 0.8
B) 7.8
C) 7.0
D) 12.8

Answer 1

Hi :)

Overall tax rate is
(460÷6,595)×100=7%
Option c is the answer

Hope it helps

Answer 2

Option c. 7.0 is the correct answer.

Explanation:

Cost of a certain car before taxes = $6,595.00

Taxes = $460.00

License tags cost = $55.00

The question asked about the tax rate, cost of license tags is not a tax, this is an expense.

so we calculate the tax rate

=
`(460)/(6595)` × 100

= 6.97% ≈ 7.0%

Overall tax rate of the car is 7.0%. Option c. 7.0 is the correct answer.