Question

Four items are purchased at prices of $5.30, $1.29, $.53, and $.68. Sales tax applies at 5% of the total purchase price. What is the total charge?

Answer 1

Answer: $8.19

Step-by-step explanation:

Add up the prices

5.30 + 1.29 + 0.53 + 0.68 = 7.80

This is the total amount before tax is added. To find the amount after tax, we multiply by 1.05 to get

1.05*7.80 = 8.19

Or a longer way is to find 5% of 7.80 getting 0.05*7.80 = 0.39 in the amount of tax owed, which is added on top of the previous total we got earlier. So we have 7.80 + 0.39 = 8.19

The use of the multiplier 1.05 is handy when you need to apply multiple percentage increases (it also works if you have multiple discounts as well).

Answer 2

$8.19

Step-by-step explanation:

1. Add the cost of the items together

5.3 + 1.29 + 0.53 + 0.68 = 7.8

2. Solve for 5% of the cost of the items

5% = 0.05

7.8 · 0.05 = 0.39

3. Add the sales tax to the price of the items

7.8 + 0.39 = 8.19