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Suppose that the local sales tax rate is 4% and you purchase a car for $15,100.

a. How much tax is paid?
b. What is the car's total cost?

1 Answer

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a. The tax paid would be:

$15,100 x 0.04 = $604

b. The car's total cost would be:

$15,100 + $604 = $15,704

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