Question

What is the final price of an item that costs $72.50 with a sales tax of 8%?

Answer 1

Sales Tax is a type of tax that is levied when an item is sold to a customer. It is paid to government by the seller.

Explanation:

Taxes calculation in a bill is fairly simple. The concepts involved are:- Percentages and Addition.

To calculate Sales Tax, we just need to figure out the Percentage given in terms of the currency (here dollar) and then add it to the actual cost incurred ($72.50).

So, we proceed as follows:-
The actual cost price = `$72.50`
Additional Sales tax to be levied = `8%`
Now, calculating sales tax in terms of currency = `8% of` `$ 72.50`

= `8/100 X 72.50` = `0.08 X 72.50` = `5.8`
Thus, we need to pay $5.8 as tax on the cost $72.50.

So, total (final price) = `$` `72.50 +` `$` `5.8` = `$` `78.3`.