10.2 Sales Tax Practice

Front

What is sales tax?

Back

A sales tax is a consumption tax imposed by the government on the sale of goods and services, calculated as a percentage of the purchase price.

Front

How do you calculate the final cost including sales tax?

Back

Final Cost = Original Price + (Original Price x Sales Tax Rate).

Front

If an item costs $100 and the sales tax is 5%, what is the final cost?

Back

Final Cost = $100 + ($100 x 0.05) = $105.

Front

What is the decimal equivalent of 7.5%?

Back

0.075

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

What is the combined sales tax rate for a city with a state tax of 6% and a local tax of 2%?

Back

Combined Sales Tax Rate = State Tax + Local Tax = 6% + 2% = 8%.

Front

If a product costs $200 and the sales tax is 8%, what is the total amount paid?

Back

Total Amount = $200 + ($200 x 0.08) = $216.

Front

What is the sales tax on a $50 item with a 10% tax rate?

Back

Sales Tax = $50 x 0.10 = $5.

Front

How do you express 12% as a decimal?

Back

0.12

Front

What is the sales tax on a $1,000 purchase with a 15% sales tax?

Back

Sales Tax = $1,000 x 0.15 = $150.