Final answer:
To calculate the sales tax rate, divide the sales tax amount by the item's price. In this case, dividing $588.00 by $7000 gives a tax rate of 8.4%.
Step-by-step explanation:
The student is asking about how to calculate the sales tax rate as a percent of the total cost of an item, in this case, a car. To find the sales tax rate, we use the formula:
Amount of sales tax = price × rate of sales tax
From the question, we know that the amount of sales tax is $588.00 and the price of the car is $7000. We can rearrange the formula to solve for the rate of sales tax:
Rate of sales tax = Amount of sales tax ÷ price
By substituting the provided numbers into the formula, we get:
Rate of sales tax = $588.00 ÷ $7000
Calculate the rate of sales tax:
Rate of sales tax = 0.084 or 8.4%
Therefore, the sale tax rate is 8.4%.