Calculating Sales Tax

Front

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 the final price including sales tax?

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To calculate the final price including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

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

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The final price is $105. (Calculation: $100 + ($100 * 0.05) = $105)

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What is the formula to calculate sales tax?

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Sales Tax = Original Price x Sales Tax Rate.

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How do you convert a percentage to a decimal for calculations?

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To convert a percentage to a decimal, divide the percentage by 100. For example, 20% becomes 0.20.

Front

If a product costs $50 and the sales tax is 8%, how much is the sales tax amount?

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The sales tax amount is $4. (Calculation: $50 * 0.08 = $4)

Front

What is the total amount Myron walked away with after winning $33,000 and paying 7.25% tax?

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Myron walked away with $30,607.50 after paying $2,392.50 in taxes.

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How do you find the sales tax rate if you know the original price and the final price?

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To find the sales tax rate, subtract the original price from the final price, then divide by the original price. (Sales Tax Rate = (Final Price - Original Price) / Original Price)

Front

What is the final price of an item that costs $20 with a sales tax of 15%?

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The final price is $23. (Calculation: $20 + ($20 * 0.15) = $23)

Front

If a ticket costs $600 and the sales tax is 30%, how much is the sales tax?

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The sales tax is $180. (Calculation: $600 * 0.30 = $180)