Sales tax

Question

What is the total cost of a $20 item after adding 5% sales tax?

Answer 1

total cost = item price + (item price x sales tax rate)

 

let's convert the sale tax rate to a decimal, so 5% = 0.05

 

total cost = $20 + ($20 x 0.05)

 

total cost = $20 + $1

 

total cost = $21