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)? _____ %

Answer 1

The overall tax rate is 7%

Explanation:

To calculate the overall tax rate, you can use a rule of three to determine the percentage of the taxes ($460) in regards to the cost of the car ($6,595). The license tags cost is not considered as it is an expense.

$6,595 → 100%

$460 → x

x= ($460*100%)/$6,595

x= 7%