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Greg lives in a state with 8% sales tax and has $20. How much can he spend on items including tax?

a. $18.52
b. $21.60
c. $22.40
d. $24.54

User Maryory
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1 Answer

5 votes

Final answer:

Greg can spend $18.52 on items before sales tax to make sure the total with an 8% tax does not exceed $20. This makes the correct answer option (a).

Step-by-step explanation:

To determine how much Greg can spend on items including an 8% sales tax with $20, we need to calculate the total cost of items before tax that would amount to $20 once tax is added. To do this, we first convert the 8% sales tax to a decimal, which is 0.08. Then, we add 1 to this decimal to account for the original cost of the items (1 + 0.08 = 1.08). Next, we divide the total amount Greg has by this sum to find the maximum he can spend before tax.

$20 รท 1.08 = $18.52

Therefore, Greg can spend $18.52 on items before tax to have a total including tax of $20. This corresponds to option (a).

User Tonso
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