what is the sales tax of the item?

Question

The after-tax cost of a certain item is $2674. If the local tax rate is 1.5% and the state tax rate is 3.1%, find the sales tax of this item.

Answer 1

Hi, Brooke.

So the total tax rate is 1.5 + 3.1 = 4.6%

Let X be the original cost of the item

 

1.046X = 2674

 

X = 2556.41

 

To find the sales tax:

2674 - 2556.41 = 117.59