Question

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?

Answer 1

`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`