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A mother explains to her child that the price on the sign is not the total price for a wooden toy chest, because the price does not include tax. She points out that a $100\$100 wooden toy chest actually costs $102\$102 once the sales tax is added. What is the sales tax percentage? Write your answer using a percent sign (%).

Full solution

Q. A mother explains to her child that the price on the sign is not the total price for a wooden toy chest, because the price does not include tax. She points out that a $100\$100 wooden toy chest actually costs $102\$102 once the sales tax is added. What is the sales tax percentage? Write your answer using a percent sign (%).
  1. Calculate tax difference: Calculate the amount of tax added to the original price.$102$100=$2\$102 - \$100 = \$2
  2. Calculate tax percentage: Calculate the sales tax percentage.\newlineTax percentage = (Tax amount/Original price)×100%(\text{Tax amount} / \text{Original price}) \times 100\%\newline= ($2/$100)×100%(\$2 / \$100) \times 100\%\newline= 2%2\%

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