Question

A bicycle has a listed price of $ 726.98 before tax. if the sales tax rate is 8.25 % , find the total cost of the bicycle with sales tax included. round your answer to the nearest cent, as necessary.

Answer 1

To calculate the total cost of the bicycle with sales tax, multiply the listed price $726.98 by the tax rate of 8.25% (converted to a decimal), round to the nearest cent, and add the sales tax to the original price. The total cost is $786.96.

Step-by-step explanation:

To find the total cost of the bicycle, including sales tax, you would perform the following calculation: First, convert the sales tax rate from a percentage to a decimal by dividing by 100. So, 8.25% becomes 0.0825. Next, multiply the listed price of the bicycle by this decimal to find the amount of sales tax.

Amount of sales tax = price × rate of sales tax

$726.98 × 0.0825 = $59.97645

Now, round the sales tax to the nearest cent which gives us $59.98. The final step is to add this to the original price of the bicycle:

$726.98 + $59.98 = $786.96

Therefore, the total cost of the bicycle with sales tax is $786.96.