Question

A dinner cost $22 and a sales tax of $1.87 was added to the bill. How much would the sales tax be on a $66 dinner? What is the tax rate for meals in this city?

Answer 1

The correct answer is the sales tax charged is $5.61 for $66 dinner at 8.5% tax rate.

Explanation:

Cost of the dinner is $22. Tax levied on it is $1.87

Let x% is the rate of tax in the city.

Therefore, x% of 22 = 1.87

⇒ x = 1.87 ×
`(100)/(22)` = 8.5

Therefore 8.5% is the tax rate in the city on foods.

Now another dinner costs $66.

Tax levied on it at the same percentage is given by 8.5% of 66 = $5.61.

Thus $5.61 as sales tax would be charged for a $66 dinner.