Question

In New York, state sales tax rates vary by county. In Allegany County, the sales tax rate is 8 1 2 %. a. A book costs $12.99, and a video game costs $39.99. Rounded to the nearest cent, how much more is the tax on the video game than the tax on the book?

Answer 1

$ 2.30

Explanation:

Given that the sales tax rate
`= 8(1)/(2)\%=8.5\%`

The cost of the book is $ 12.99.

So, the tax on the book= 8.5% of 12.99

`= \frac {8.5}{100}* 12.99`

=1.10

So, the sales tax on the book is $ 1.10.

The cost of the video game is $ 39.99.

So, the tax on the book= 8.5% of 39.99

`= \frac {8.5}{100}* 39.99`

=3.30

So, the sales tax on the book is $ 3.40.

The difference of taxes on both the items = $ 3.40-$ 1.10=$ 2.30

So, the tax on the video game is $ 2.30 more than then tax on the book.