Question

An article retails for 27.50. The city sales tax is 6%, and the federal excise tax is 8%. How much does the article cost altogether?

Answer 1

Cost of the article = $27.50
Amount of city sales tax = (27.50 x 6%) = $1.65
Amount of excise tax = (27.50 x 8%) = $2.20
From my knowledge, we pay city sales tax and federal excise tax when we buy something, so the total cost would be $31.35

Answer 2

Therefore, The article costs altogether = $31.35

Explanation:

Retail cost of the article = $27.50

The city sales tax is 6%

So, The city sales tax cost = 6% of 27.50

⇒ The city sales tax cost = $1.65

The federal excise tax is 8%

⇒ The federal excise tax cost = 8% of 27.50

⇒ The federal excise tax cost = $2.20

The total city tax = 1.65 + 2.20

⇒ The total city tax = $3.85

Therefore, The article costs altogether = 27.50 + 3.85

= $31.35