Question

An item cost 4 before tax and 4.32 after sales tax. What is the sales tax rate

Answer 1

Percentage increase:

32/400 x 100
4/25 x 100
400/25
16/2
= 8%

Answer 2

Answer: 8%

Explanation:

initial cost before tax (x) = 4

cost after tax (y) = 4.32

to calculate for the sales tax rate ;

[(y - x)/x] x 100%

inputting the values

= [(4.32 - 4)/4] x 100

= (0.32/4) x 100

= 0.08 x 100

= 8%