Page 503 - Basic College Mathematics with Early Integers
P. 503
Objectives PERCENT AND PROBLEM SOLVING: SALES TAX,
6.5 COMMISSION, AND DISCOUNT
Calculate Sales Tax and
Total Price.
Objective Calculating Sales Tax and Total Price
Calculate Commissions.
Percents are frequently used in the retail trade. For example, most states charge a tax
Calculate Discount and Sale Price. on certain items when purchased.This tax is called a sales tax, and retail stores collect
it for the state. Sales tax is almost always stated as a percent of the purchase price.
A 9% sales tax rate on a purchase of a $10 calculator gives a sales tax of
#
sales tax = 9% of $10 = 0.09 $10.00 = $0.90
The total price to the customer would be
purchase price plus sales tax
u M
v
T T T
$10.00 + $0.90 = $10.90
This example suggests the following equations:
Sales Tax and Total Price
#
sales tax = tax rate purchase price
total price = purchase price + sales tax
In this section we round dollar amounts to the nearest cent.
PRACTICE 1 Example 1 Finding Sales Tax and Purchase Price
If the sales tax rate is 8.5%,
Find the sales tax and the total price on the purchase of an $85.50 atlas in a city
what is the sales tax and the
where the sales tax rate is 7.5%.
total amount due on a $59.90
Goodgrip tire? (Round the
sales tax to the nearest cent.)
Solution: The purchase price is $85.50 and the tax rate is 7.5%.
sales tax = tax rate # purchase price
T T b
sales tax = 7.5% # $85.50
= 0.075 # $85.5 Write 7.5% as a decimal.
L $6.41 Rounded to the nearest cent
Thus, the sales tax is $6.41. Next find the total price.
total price = purchase price + sales tax
T T b
total price = $85.50 + $6.41
= $91.91 Copyright 2012 Pearson Education, Inc.
The sales tax on $85.50 is $6.41, and the total price is $91.91.
Answer
1. tax: $5.09; total: $64.99 Work Practice 1
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