Question

A computer costs £968.a tax of 16.5% is then added to the cost of the computer. Work out the amount of tax that is added to the cost of the computer

Answer 1

1,127.72 pounds (or whatever monetary units.)

Explanation:

The original cost is 968.

A tax is a cut of the cost which is added to the original.

16.5% is the same as 0.165 as a decimal.

968 * 0.165 = 159.72

968 + 159.72 = 1,127.72

The alternative and faster method is to:

Since the cost is added to the original, you can add 1 to get:

1.165 and then multiply by the original

968 * 1.165 = 1,127.72

Both methods are the same, but the alternative can save some time.