Question

Analyze the problem situation(s) described below related to sales tax. Calculate the answers as requested:

a) Original amount (subtotal)
b) Sales tax rate
c) Sales tax amount
d) Final price of the new car
e) Explanation of the solution process

Answer 1

To calculate the final price of a new car including sales tax, convert the tax rate to a decimal, multiply it with the original price to find the tax amount, and add it to the original price to find the final price.

Step-by-step explanation:

Calculating the final price of a new car including sales tax involves several steps. To determine these, you need to know the original amount (subtotal), the sales tax rate, the sales tax amount, and then you can calculate the final price.

Solution Process

1. Determine the original amount (subtotal) of the car.
2. Convert the sales tax rate from a percentage to a decimal.
3. Multiply the original amount by the decimal sales tax rate to find the sales tax amount.
4. Add the sales tax amount to the original amount to get the final price of the new car.

Using the provided formulas, let's go through an example:

Suppose the original price of the car is $20,000 and the sales tax rate is 8%. First, convert the 8% sales tax to a decimal by dividing by 100, which gives 0.08. Next, multiply the original amount by this decimal:

$20,000 × 0.08 = $1,600

This is the sales tax amount. Finally, add the sales tax to the original amount to find the final price:

$20,000 + $1,600 = $21,600

Therefore, the final price of the car including sales tax is $21,600.