2) A car with a base price of $22,000 is sold at a total cost (after tax) of $23,430 . What is the tax rate?

Answer 1

Hello Grace,

One way to solve this is to find the amount of money paid in tax, then divide it by the base price.

The car has a base price of $22,000 and cost $23,430 after tax. That means the tax paid was

$23,430 - $22,000 = $1,430

Now to find the tax rate: you can divide the amount paid in tax by the base price:

1430/22000 = 0.065

When you convert 0.065 into a percentage, you get 6.5%

The tax rate is 6.5%