Question

Suppose that the local sales tax rate is 4% and you purchase a car for $18,000. How much tax is paid? What is the cars total cost?

Answer 1

Solution

Step 1:

Cost = $18000

Tax = 4% of $18000

Step 2

$\begin{gathered} Tax\text{ = 4\% of \ 18000} \\ \\ Tax\text{ = }\frac{4}{100}\text{ }\times\text{ \ 18000} \\ \\ Tax\text{ paid = \ 720} \end{gathered}$

Step 3