Question

An MP3 player costs $40, and a sales tax of $2.40 is added to the cost. What is the sales tax rate? (answer in %)

Answer 1

6%.

Explanation:

2.40/40

Answer: .06 = 6%

Conversion of decimal placement to percentage:

1% = 1/100 = .01

For every percent, it goes up by .01 decimals, or 1/100.