Derrick buys a sound system priced at $8,190 but pays $8,845.20 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 = (8845.20 – 8190) / 8190 x 100 = 8%

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%