Question

Adding a 4% tax to the base cost of an item is the same as multiplying the base cost of the item by what decimal factor?

a) 0.04
b) 0.4
c) 1.04
d) 1.4

Answer 1

The decimal factor equivalent to adding a 4% tax to the base cost of an item is 1.04.

Step-by-step explanation:

To find the decimal factor that is equivalent to adding a 4% tax to the base cost of an item, we can use the formula:

Decimal Factor = 1 + (Tax Rate in decimal form)

For a 4% tax, the decimal form is 0.04. Plugging this value into the formula, we get:

Decimal Factor = 1 + 0.04 = 1.04

Therefore, the correct answer is c) 1.04.