Suppose that the local sales tax rate is 5% and you purchase a car for 15,900. How much tax is paid?

Answer 1

You need only to find the tax that is paid on the purchase price of the car. The purchase price is $15,900.00 so the tax would be 5% of this amount which is .05 X 15,900 = 795.

Therefore, the amount of tax would be $795.00.