Final answer:
To determine the tax rate Sandra paid for her boots, the difference between the total cost after tax and the original price is divided by the original price, which yields a 10% tax rate.
Step-by-step explanation:
To find the tax rate Sandra paid on her boots, we need to calculate the difference between the total cost with tax and the original cost of the boots, then divide that difference by the original cost. This is represented by option A, which is the correct calculation:
Tax rate = (Total cost with tax - Original cost) / Original cost
For Rachael's boots, this would be calculated as follows:
- Total cost with tax = $82.50
- Original cost = $75
- Tax rate = ($82.50 - $75) / $75
- Tax rate = $7.50 / $75
- Tax rate = 0.10 or 10%
The tax rate Sandra paid on her boots is 10%.