Question

What is the tax rate if the price of the chair is $54.00 and the total price (the price of the chair and the tax) is $58.32?

A) 5%.
B) 6%.
C) 7%.
D) 8%.

Answer 1

8%

Step-by-step explanation:

Cost Price=$54.00,

selling price=$58.32

profit=4.32

profit% or tax%=$4.32÷$54×$100

÷54=27

÷100=50

4.32×50=216

216%÷27%=8%

tax%=8%

Answer 2

The correct option is D). The tax rate is found by dividing the tax amount of $4.32 by the original price of $54.00 and then converting it to a percentage, which equals 8%.

Step-by-step explanation:

To determine the tax rate when the price of the chair is $54.00 and the total price, including tax, is $58.32, we first calculate the amount of sales tax paid by subtracting the price of the chair from the total price. The sales tax paid is $58.32 - $54.00 = $4.32.

Next, we convert the tax paid into a percentage of the original price to find the rate. To do this, divide the tax amount by the original price and then multiply by 100 to convert it to a percent:

Sales Tax Rate = ($4.32 / $54.00) × 100 = 8%

Therefore, the correct answer is D) 8%.