Q. 20 If you buy a new sweatshirt that is priced at $35, and pay 37.50 after tax, what was the sales tax rate? Round to the nearest whole percent.
Identify Costs: Identify the total cost, the original price, and the amount paid in tax.The original price of the sweatshirt is $35, and the total cost after tax is $37.50. To find the amount paid in tax, subtract the original price from the total cost.Amount paid in tax = Total cost after tax - Original priceAmount paid in tax = $37.50−$35Amount paid in tax = $2.50
Calculate Tax Rate: Calculate the sales tax rate as a decimal.To find the sales tax rate, divide the amount paid in tax by the original price.Sales tax rate (as a decimal) = Amount paid in tax / Original priceSales tax rate (as a decimal) = $2.50/$35Sales tax rate (as a decimal) = 0.07142857142857142
Convert to Percentage: Convert the sales tax rate from a decimal to a percentage and round to the nearest whole percent.To convert the decimal to a percentage, multiply by 100 and round to the nearest whole number.Sales tax rate (as a percentage) = Sales tax rate (as a decimal) ×100Sales tax rate (as a percentage) = 0.07142857142857142×100Sales tax rate (as a percentage) ≈7.14%Rounded to the nearest whole percent, the sales tax rate is approximately 7%.