Questions: Question 7 Find the amount of tax and the tax rate. Round to two decimal places. Cost of item: 97 Selling price: 105.76 Tax amount: Tax rate: %

Transcript text: Question 7 Find the amount of tax and the tax rate. Round to two decimal places. Cost of item: \$97 Selling price: $\$ 105.76$ Tax amount: \$ $\square$ Tax rate: $\square$ $\%$ Question Help: Video Submit Question

Solution

Solution Steps

To find the tax amount, subtract the cost of the item from the selling price. To find the tax rate, divide the tax amount by the cost of the item and multiply by 100 to convert it to a percentage.

Step 1: Calculate the Tax Amount

To find the tax amount, subtract the cost of the item from the selling price. The formula is:

\[ \text{Tax Amount} = \text{Selling Price} - \text{Cost of Item} \]

Substituting the given values:

\[ \text{Tax Amount} = 105.76 - 97 = 8.76 \]

Step 2: Calculate the Tax Rate

To find the tax rate, divide the tax amount by the cost of the item and multiply by 100 to convert it to a percentage. The formula is:

\[ \text{Tax Rate} = \left( \frac{\text{Tax Amount}}{\text{Cost of Item}} \right) \times 100 \]

Substituting the calculated tax amount:

\[ \text{Tax Rate} = \left( \frac{8.76}{97} \right) \times 100 \approx 9.03\% \]