Question

A certain car costs $11,595 before taxes are added. Taxes are $860 and license tags cost $95. What is the overall tax rate (to the nearest tenth)?

A. 0.8%
B. 7.4%
C. 8.2%
D. 12.1%

Answer 1

The answer is B)7.4%

Explanation:

Pure cost of the car is 11595$. It is stated that taxes costs 860$ for the car. To find the overall tax rate we need to simply divide tax value to car original cost.

`860/11595=0.074`