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Tanvi buys a new bike priced at $70. If the sales tax is 10%, how much tax will Tanvi pay?

User Lidia
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Final answer:

To calculate the sales tax Tanvi will pay on a $70 bike with a 10% tax rate, convert the percentage to a decimal (0.10) and multiply it by the price of the bike, resulting in a tax of $7.00.

Step-by-step explanation:

To calculate how much tax Tanvi will pay when she buys a new bike priced at $70 with a 10% sales tax, you will first need to convert the percentage to a decimal. This is done by dividing the percentage by 100. Therefore, 10% becomes 0.10 when it is converted into a decimal.

Next, you multiply the decimal form of the sales tax rate by the price of the item. For Tanvi's bike, this calculation would look like this:

  • $70 × 0.10 = $7.00

The result is the amount of sales tax Tanvi will have to pay. In this case, Tanvi will pay $7.00 in sales tax.

As a general example, when you make any purchase, the sales tax is typically a percentage of the purchase price. By converting this percentage to a decimal and multiplying it by the cost of the item, you determine the additional amount you'll pay for the item. This is an important concept in understanding real-world applications of percentages and financial literacy.

User Dollar
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