12/10 Tax Test Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase. It is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 5% tax rate: $100 x 0.05 = $5.

Front

If an item costs $50 and the sales tax is 8%, how much tax do you pay?

Back

$4.00

Front

What is the total cost of an item including tax?

Back

The total cost is the price of the item plus the sales tax. For example, if an item costs $50 and the tax is $4, the total cost is $54.

Front

What is a tax rate?

Back

A tax rate is the percentage at which an item is taxed. It is expressed as a fraction of the total price.

Front

If a shirt costs $20 and the sales tax is 10%, what is the total cost?

Back

$22.00

Front

How much tax would you pay on a $200 item with a 6% tax rate?

Back

$12.00

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Price + (Price x Tax Rate) or Total Cost = Price x (1 + Tax Rate)

Front

If a video game costs $60 and the sales tax is 7%, how much do you pay in total?

Back

$64.20

Front

What is the sales tax on a $24.95 item with a 7% tax rate?

Back

$1.75