The tax on $85.99 at a 6% tax rate is $5.16.
To calculate the tax on $85.99 with a 6% tax rate, you can use the formula:
Tax = Original Amount × Tax Rate
Substitute the values:
Tax = $85.99 × 0.06
Tax = $5.16
Therefore, the tax on $85.99 at a 6% tax rate is $5.16.
This amount represents the additional cost imposed by the tax, calculated as a percentage of the original purchase.
Understanding and calculating taxes are essential aspects of financial literacy, enabling individuals to make informed decisions regarding their expenditures.
In this case, the 6% tax on the $85.99 purchase contributes $5.16 to the overall cost.
This knowledge is valuable for consumers, businesses, and policymakers alike, facilitating transparent financial transactions and aiding in budgeting and financial planning.
The probable question may be:
What is the tax on 85.99 dollars if tax rate is 6%?