Sales Tax and Markup

Question

A customer returns an item to a clothing store in Nassau County. The clothing store has another location in New York City and the customer shops at both locations. The customers reciept shows $13.80 tax was charged on a $159.99 item. The sales tax in New York is 8.5%. The sales tax in Nassau County is 8 5/8%. Was the item purchased at the New York City store or the Nassau County store? 

Answer 1

Let x represents the sales tax rate.

The equation for sales tax rate is:

(x/100) = (amount of tax/cost of item or amount to be taxed)

(x/100) = 13.8/159.99

x = (13.8/159.99)*100

x = 8.625 % or  8 5/8%

 

This represents the sales tax rate in Nassau County. Therefore, the item was purchased at the Nassau County store.