A bicycle has a listed price of $707.95 before tax. If the sales tax rate is 6.75%, find the total cost of the bicycle with sales tax included. Round your answer to the nearest cent, as necessary.

Answer 1

To determine the tax multiply 0.0675 times 707.95 (6.75% of $707.95). Add that result to the listed price to get the total price.

BUT, note what is happening:

707.95 + 0.0675(707.95) = 707.95[1 + 0.0675] = 1.0675(707.95). Performing this calculation is less time consuming than the one indicated above.

Take a look here to get the idea (and the result): A = amount of listed price, p = percent for tax.

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