Question

What amount is payable to a state tax board if the original sales price is $3,000, and the tax rate is 3.5%?

a) $105
b) $300
c) $10.50
d) $350

Answer 1

The state tax payable on a $3,000 sales price at a 3.5% tax rate is $105. We arrive at this by converting the tax rate to a decimal (0.035) and multiplying it by the sales price.

Step-by-step explanation:

The question asks us to calculate the state tax payable on an original sales price of $3,000 at a tax rate of 3.5%. To find the amount of state tax, we need to convert the percentage to a decimal and then multiply by the total cost.

So the calculation would be $3,000 × 0.035. When you do the math, you'll find that the state tax amount is $105.00.

So the amount payable to the state tax board is $105.00, which corresponds to option (a) $105.