Question

Explain how to use the sales tax rate to determine an item's total cost.

Choose the correct answer below.

A. Multiply the purchase price by the tax rate. Then add the result to the purchase price.

B. Multiply the purchase price by the tax rate.

C. Divide the purchase price by the tax rate.

D. Multiply the purchase price by the tax rate. Then subtract the result from the purchase price.

Answer 1

A. Multiply the purchase price by the tax rate. Then add the result to the purchase price.

Explanation:

The amount of tax is found by multiplying the taxed amount by the tax rate. The customer generally pays the sales tax, so the amount the customer will pay will be the sum of the purchase price and the tax.