PSL December 19, 2024

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What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

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How do you calculate sales tax?

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To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, if an item costs $100 and the sales tax rate is 8.25%, the sales tax is $100 x 0.0825 = $8.25.

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What is the sales tax rate in Texas?

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The sales tax rate in Texas is 8.25%.

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If an RV costs $64,575, how do you find the total cost including sales tax?

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To find the total cost including sales tax, calculate the sales tax and then add it to the original price. Total Cost = Original Price + Sales Tax.

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Calculate the sales tax for an RV that costs $64,575 in Texas.

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Sales Tax = $64,575 x 0.0825 = $5,327.44.

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What is the total cost of the RV including sales tax?

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Total Cost = $64,575 + $5,327.44 = $69,902.44.

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What does it mean to round to the nearest cent?

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Rounding to the nearest cent means adjusting a monetary amount to the closest hundredth of a dollar, which is two decimal places.

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Why is it important to understand sales tax when making a purchase?

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Understanding sales tax helps consumers know the total cost of their purchases and budget accordingly.

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What is a percentage?

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A percentage is a way of expressing a number as a fraction of 100, often used to describe proportions.

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How do you convert a percentage to a decimal?

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To convert a percentage to a decimal, divide the percentage by 100. For example, 8.25% becomes 0.0825.