Question

Nancy Boone’s new automobile had an MSRP of $27,853.00. The dealer prep charge was $278.50 and the title fee was $25.00. Options totaled $2,375.50. Find the sales tax rate, to nearest hundredth percent, if the total cost was $32,591.22 and the sales tax applied to everything but the title fee.

Answer 1

The sales tax included in the sale of the car is 15.76%.

Explanation:

Given that the MSRP of the car bought by Nancy Boone is $ 27,853, and the total cost of the car was $ 32,591.22, including sales tax, plus a dealer prep charge of $ 278.50 and a title fee of $ 25, to find out the percentage of sales tax ( which does not include the title fee) it is necessary to perform the following calculation:

32,591.22 - 25 = 32,566.22

27,853 + 278.5 = 100

32,566.22 = X

28,131.5 = 100

32,566.22 = X

(32,566.22 x 100) / 28,131.5 = X

3,256,622 / 28,131.5 = X

115.76 = X

115.76 - 100 = 15.76

Thus, the sales tax included in the sale of the car is 15.76%.