Question

A sound costs $8200 before sales tax. Derrick pays $8938.00 for the sound system, including tax. What is the tax rate where Derrick lives?

Answer 1

tax rate is 9%

Explanation:

The tax rate can be calculated as:

`r=(p-p_0)/(p_0)\cdot 100`

where

p is the price after tax

p0 is the price before tax

For the sound system in this problem, we have:

`p=8938` (price after tax)

`p_0=8200` (proce before tax)

Therefore, the tax rate is:

`r=(8938-8200)/(8200)\cdot 100=9\%`