Question

a bicycle has listed prices of $511.95 before tax. if the sale tax rate is 7.25% find the total cost of the bicycle with sale tax included

Answer 1

When we know the tax rate of an article (tax%) we can calculate the costs by taxes of that article like this:

`\text{tax}=priceofthearticle*\frac{\text{tax\%}}{100}`

In this case, the price of our article is $511.95 and the tax rate is 7.25%, replacing in the formula above we find the cost associated with the tax, like this:

`\text{tax}=511.95*(7.25)/(100)\approx37.12`

And the total cost, would be the sum of the listed price and the tax cost:

`\text{total cost}\approx\text{37.12+511.95}\approx\text{549.07}`

Then, the total cost is $549.07