Derrick buys a sound system priced at $9,480, but pays $9,811.80 with tax. What is the tax rate where Derrick lives?

Question

What is the tax rate in percentage, explain step by step how to solve 

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 = (9811.80  –  9480) / 9480 x 100 = 3.5%

Meaning that the tax rate where Derrick lives is 3.5%

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

Let t = the amount of tax Derrick paid
8190 + t = 8845.20
t = $655.20
rate of tax = 655.20/8190 = .08 = 8%

Answer 3

9811.80 = 9480x

 

(Note x > 1)

 

Solve for x.

 

x = 9811.80/9480 = 1.035

 

Tax rate in percent is

 

100(x - 1) = 100(1.035 - 1) = 100(0.035) = 3.5%