Question

If the total price paid for an item is $20.25 and the cost of the item before sales tax is $18.90, what is the rate of sales tax?

Answer 1

20.25 -18.90 = 1.35

1.35 / 18.90 = 0.071428571

= 7.14%

check:

18.90 x 1.34946 Round to 1.35

18.90 + 1.35 = 20.25

Sales tax = 7.14%