Question

Heather Johnson bought a new set of tires for $436.00 and a car seat for $22.85. The state tax rate is 6%, the county tax rate is 1.5%, and the city tax rate is 0.5%. What is the total purchase price?

Answer 1

$495.56

Explanation:

Tax increases the price paid for a good or service. So, the total price paid for the goods would increase by the total amount of tax

Sum of the three taxes = 6% + 1.5% + 0.5% = 8%

Total cost of items purchased = $436 + $22.85 = $485.85

Total purchase price = Total cost of items purchased x (1 + total tax)

$485.85 x (1.08) = $495.56