Question

Lacy is on a school field trip and wants to purchase a souvenir for her parents. The item she wants is priced at $20. The total cost of the souvenir with tax is $21.45. What tax rate does Lacy pay for the souvenir?

Answer 1

7.25%

Explanation:

The item she wants is priced at $20.

The total cost of the souvenir with tax is $21.45.

find:

What tax rate does Lacy pay for the souvenir?

$21.45 = tax ($20) + $20

tax = ( $21.45 - $20 )

$20

tax = 0.725 x 100 = 7.25%

therefore, the tax of the souvenir is 7.25%