Final answer:
To find the sales tax, multiply the price by the rate of sales tax. So the Total Cost = $41.60
Step-by-step explanation:
To find the sales tax, you need to multiply the price by the rate of sales tax. In this case, the selling price is $40.00 and the rate of sales tax is 4%.
Sales Tax = Selling Price x Rate of Sales Tax
Sales Tax = $40.00 x 0.04
Sales Tax = $1.60
So the sales tax is $1.60.
To find the total cost of the item, you need to add the price and the sales tax.
Total Cost = Selling Price + Sales Tax
Total Cost = $40.00 + $1.60
Total Cost = $41.60