Question

Monica went to purchase a new bike when she went to visither grandmother in California. The bicyde cost $89.00. Thesales tax in California is 7.5% How much will she pay in taxeswhen purchasing the bike in California? Monica lives in Ohio.The sales tax in Ohio is 7% She can purchase the same bikefor the same original cost in Ohio. If she waits until she getshome to purchase the bike, how much will she savepurchasing the bike in Ohio

Answer 1

Data:

Cost of the bike: $89.00

Salex tax California: 7.5%

Sales tax in Ohio: 7%

1. As the bike cost without tax $89.00 to find how much will she pay in taxes in California (C) you find the 7.5% of $89.00:

`C=89.00\cdot(7.5)/(100)=6.675`In California she pays in tax $6.675

2. As the bike has the same cost $89.00 to find how much she will save purchasing the bike in Ohio you:

- calculate the 7% of $89.00

`89.00\cdot(7)/(100)=6.23`In Ohio she pays in tax $6.23

- Find the difference between the tax she pays in California and the tx she pay in Ohio:

`6.675-6.23=0.445`

If she purchase the bike in Ohio she will save $0.445