Final answer:
The 9.75% sales tax means the total price of an item is increased by 9.75%. This amount is calculated by converting the tax rate to a decimal and multiplying it by the item's original price. One must then add the sales tax to the original price to get the total cost.
Step-by-step explanation:
When there is a 9.75% sales tax added to each price, it means that the total price is increased by 9.75%. This tax is calculated by converting the percentage to a decimal form and then multiplying it by the original price of the item. After the amount of sales tax is found, it is then added to the original amount to determine the total cost that the buyer needs to pay. For instance, if a student buys a calculator that costs $15.00, the sales tax amount will be $15.00 × 0.0975, which equals $1.46. The total cost of the calculator with sales tax will then be $15.00 + $1.46, equaling $16.46.
Here’s another example: Emily bought a jacket priced at $85.00. If the sales tax is 7.5%, the amount of tax she pays is $85.00 × 0.075, which gives $6.375. After rounding to the nearest cent, sales tax would be $6.38. Adding the original price of the jacket to the sales tax gives the total cost: $85.00 + $6.38 = $91.38.
To summarize, Option A is correct: The total price is increased by 9.75%. This does not mean the original price is reduced, multiplied by the percentage, or divided by it.