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3. ALGEBRA Nancy Boone's new automobile had an MSRP of

$27,853.00. The dealer prep charge was $278.50 and the title ſee

was $25.00. Options totaled $2,375,50. Find the sales tax rate,

to nearest hundredth percent iſ the total cost was $32 591.22

and the sales tax applied to everything but the title fee.

1 Answer

4 votes

Answer:

The tax rate is approximately 6.75%

Explanation:

In the question it is required to find the amount added to the total cost as tax

The given parameters are;

The Manufacturer's Suggested Retail Price, MSRP, of the automobile, MSRP = $27,853.00

The dealer prep charge, PPC = $278.50

The title fee, T = $25.00

The cost of the options added (leather, fridge, etc.), Op = $2,375.50

The total cost, C = $32,591.22

Let 'x' represent the the tax rate,

Therefore, we have;

32,591.22 = x × (27,853 + 278 + 2,375.5) + 27,853 + 278 + 2,375.5 + 25

32,591.22 = 30,506.5·x + 30,531.5

32,591.22 - 30,531.5 = 30,506.5·x

∴ 2,059.72 = 30,506.5·x

x = 2,059.72/30,506.5 = 0.06751741432 ≈ 0.0675

The tax rate, x ≈ 0.0675 = 6.75%

User Arthur Attout
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