Derrick buys a sound system priced at $5,940, but pays $6,296.40 with tax. What is the tax rate where Derrick lives?

Question

What is the tax rate in percentage 

Answer 1

Hello, thank you for taking the time to post your question!

The underlying formula that you want to use to solve this one is

Tax Rate = (Total Price – Original Price) / Original Price x 100

For this scenario that means

Tax Rate = (6296.40  – 5940) / 5940 x 100 = 6%

Meaning that the tax rate where Derrick lives is 6%

I hope that helps you get moving in a better direction on this type of question! Feel free to reach out if you have any additional questions beyond that :)

Answer 2

$5,940(x) = $6,296.40

 

x = 1.06

 

So, the tax rate is .06 or 6%