Calculating Sales Tax Essentials

What is the primary purpose of sales tax?

• To support private businesses

• To discourage buying

• To pay for government services

• To increase the price of goods

Which of the following states does NOT have a state sales tax?

• California

• Delaware

• Texas

• Florida

How is sales tax generally calculated?

• As a flat fee for all purchases

• Based on the buyer's income

• As a fixed amount per item

• As a percentage of the purchase price

What is the first step in calculating sales tax?

• Round the final amount

• Add the tax rate to the price

• Convert the tax rate to a decimal

• Multiply the price by the tax rate

Frankie wants to buy a book that costs $5. If the sales tax is 8.25%, what is the total cost of the book?

• $5.41

• $5.50

• $5.25

• $5.82

What should you do after multiplying the price by 1 plus the decimal tax rate?

• Convert the result back to a percentage

• Round the result to the nearest hundredth

• Add the original price

• Subtract the original price

Why is it important to round the final sales tax calculation?

• To make it easier to understand

• To comply with currency standards

• To reduce the tax amount

• To increase the tax amount

What is the benefit of knowing how to calculate sales tax?

• It allows you to manage your money better

• It helps you get discounts

• It helps you avoid paying taxes

• It makes shopping faster

What should you do to find out the sales tax rate in your area?

• Use a fixed rate of 5%

• Ask a friend

• Guess based on the price

• Do some research

What is one way to share your knowledge about sales tax with others?

• Ignore it

• Use it only for personal shopping

• Discuss it with family and friends

• Keep it to yourself