Question

The tax on a $30 item is $1.20. Find the tax on a $130 item. How do I set this problem up?

Answer 1

$5.20

Explanation:

Find the tax rate first:

$1.20

-------------- = 0.04

$30.00

The tax rate is 4%.

Then the tax on a $130 item is 0.04($130) = $5.20