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A business buys goods for $1,000 plus 15% sales tax. They then sell those goods for $1, 500 + 15% sales tax?

User Apatniv
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Final answer:

To determine the total amount paid for goods including sales tax, convert the percentage to a decimal and multiply it by the cost of goods. For a $1,000 purchase with 15% tax, the total is $1,150. When resold for $1,500 plus 15% tax, the total is $1,725.

Step-by-step explanation:

Calculating Sales Tax

To find the total amount a business pays for goods including sales tax, you first need to calculate the amount of sales tax. Convert the sales tax rate from a percentage to a decimal by dividing by 100. Then, multiply this decimal by the cost of the goods to find the amount of sales tax.

For a purchase of $1,000 with a 15% sales tax, the calculation would be:
$1,000 x 0.15 = $150 in sales tax. Therefore, the total cost including sales tax would be $1,000 + $150 = $1,150.

When these goods are sold for $1,500 with the same 15% sales tax, the calculation is:
$1,500 x 0.15 = $225 in sales tax. Thus, the total selling price including sales tax is $1,500 + $225 = $1,725.

User Scott Radcliff
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