Tax rate on clothing.

Question

A state imposes a sales tax on items of clothing that cost more than $175. The tax applies only to the difference of the price of the item and $175. What is the tax rate of a suit that cost $300 with a sale tax of $6.25?

Answer 1

Tax is applied to $125 (amount over $175).   x(125) = 6.25

solve for x and convert to % by shifting decimal point 2 places toward the right. 

5%, I believe.