Final answer:
To calculate the sales tax Steve will pay on a $250 stereo with a 5% sales tax, multiply $250 by 0.05, resulting in a tax amount of $12.50.
Step-by-step explanation:
The student has asked how much sales tax Steve will have to pay on a $250 stereo with a 5% sales tax. To find the amount of sales tax, you convert the percentage to a decimal and then multiply it by the cost of the item. In this case, to find the sales tax of the stereo you would do the following calculation:
$250 × 0.05 = $12.50
Therefore, the correct answer is A. $12.50.