The total cost of a new automobile, including a 4% sales tax on the price of the automobile, is $27,146. How much of the total cost of this new automobile is sales tax?

Question

asked Sep 23, 2021 44.9k views

1 Answer

Ompel · Answer 1 · 2021-09-27T01:14:42+0000

Answer:

$Sales\ Tax = \$1044$

Explanation:

Given

$Sales\ Tax = 4\%$

$Total = \$27,146$

Required

Determine the amount that is sales tax

The total price is calculated by

$Total\ Price = Price + Sales\ Tax$

Recall that Sales Tax = 4% of Price;

So, we have

$Total\ Price = Price + 4\% * Price$

Substitute 27146 for Total Price

$27146 = Price + 4\% * Price$

Convert % to decimal

27146 = Price + 0.04Price

27146 = 1.04Price

Divide both sides by 1.04

Price = (27146)/(1.04)

$Price = \$26102$

So:

$Sales\ Tax = 4\%$

$Sales\ Tax = 4\% * \$26102$

$Sales\ Tax = \$1044$