a bicycle is on sale for $189.50 the tax rate is 5% what is the total price?

Question

price $189.50 and tax rate 5% whats the total cost?

Answer 1

Price = $189.50

Tax rate = 5%

Remember to be mindful of your changing 5% to 2 decimal places when doing calculations in the calculator to 0.05

 

Option 1:

Price x Tax rate to find the amount in tax

$189.50 x 0.05 = $9.475

$9.475 is the amount in tax

 

now, take the Price + amount in tax at the 5% tax rate to find the total cost

$189.50 + $9.475 = $198.975

Answer = $198.975

 

Option 2:

Use the formula Price x (1 + Tax rate) = Total cost

Price = $189.50

Tax rate = 5%

 

$189.50 x (1 + .05) =

$189.50 x (1.05) = $198.975

 

Answer = $198.975