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your new car costs $22,500. The state tax rate is 8%. How much sale tax will you pay on the car?

 Jun 11, 2014

Best Answer 

 #2
avatar+4 
+5

When you say, the new car costs $22,500, is it inclusive of sales tax or before sales tax? If it is inclusive of sales tax, then:

(22,500 x  0.08) / 1.08 = 1,666.67 just multiply the 22,500 by 8% and then divide 108% and then you get the amount of sales tax included in the cost.

 

But if the cost of the care is before the sales tax, which means the 22,500 is only net amount with sales tax then, 

22,500 x 0.08 = 1,800

 Jun 11, 2014
 #1
avatar+118725 
+5

$${\frac{{\mathtt{8}}}{{\mathtt{100}}}}{\mathtt{\,\times\,}}{\mathtt{22\,500}} = {\mathtt{1\,800}}$$

$1800

 Jun 11, 2014
 #2
avatar+4 
+5
Best Answer

When you say, the new car costs $22,500, is it inclusive of sales tax or before sales tax? If it is inclusive of sales tax, then:

(22,500 x  0.08) / 1.08 = 1,666.67 just multiply the 22,500 by 8% and then divide 108% and then you get the amount of sales tax included in the cost.

 

But if the cost of the care is before the sales tax, which means the 22,500 is only net amount with sales tax then, 

22,500 x 0.08 = 1,800

Geele Jun 11, 2014

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