Question

You buy a car for 20,000 dollars and pay 5% in tax. How much is the tax?

Answer 1

Answer: $1,000

Explanation:

We are trying to find 5% of 20,000. Always remember that the "of" can be changed to a multiplication, and that "percent" means per hundred. So you will write (5/100) x 20,000 = 0.05 x 20,000 = $1,000.00