Question

The sales tax for an item was $25.90 and it cost $370 before tax.Find the sales tax rate. Write your answer as a percentage.

Answer 1

To find out the sales tax rate we must do a division between the sales tax and the cost before tax, then:

`\text{sales tax rate }=\frac{\text{sales tax} }{\text{cost before tax} }`

But we want to find it in percentage, then we must multiply it by 100 at the end!

`\text{sales tax rate }\%=\frac{\text{sales tax} }{\text{cost before tax}}\cdot100`

Now we have the formula, we can just apply it and do the calculus!

`\begin{gathered} \text{sales tax rate }\%=(\$25.90)/(\$370)\cdot100 \\ \\ \text{sales tax rate }\%=0.07\cdot100 \\ \\ \text{sales tax rate }\%=7\% \end{gathered}`

Hence, the sales tax rate is 7%