In order to calculate the sales tax of an item, we need to first multiply the pre-tax cost of the item by the sales tax percentage after it has been converted into a decimal. Once the sales tax has been calculated it needs to be added to the pre-tax value in order to find the total cost of the item. Let's start by working with an example. If a magazine costs $2.35 and has a 6% sales tax, then what is the total cost of the item. First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Calculating the sales tax percentage of a total:
If we are given the total cost of an item or group of items and the pre-tax cost of the good(s), then we can calculate the sales tax percentage of the total cost. First, we need to subtract the pre-tax value from the total cost of the purchase. Next, we need to create a ratio of the sales tax to the pre-tax cost off the items. Last, we need to create a proportion where the pre-tax cost is related to 100% and solve for the percentage of the sales tax. Let's start by working through an example. If a person pays $245.64 for groceries that cost $220.00 pre tax, then what is the sales tax percentage for the items.
First, subtract the pre-tax value from the total cost of the items to find the sales tax cost.
Next, create a ratio of the sales tax to the pre-tax cost of the items.
Last, create a proportion where the pre-tax value is proportional to 100% and solve for the percentage of sales tax.
Cross multiply and solve.
Isolate the sales tax percentage to the left side of the equation by dividing each side by the pre-tax value.
Round to two decimal places since our answer is in dollars and cents.
Last, we can check this answer by calculating the sales tax percentage of the total as seen previously.
First, we need to convert the sales tax percentage into a decimal by moving the point two spaces to the left.
Now, we need to multiply the pre-tax cost of this item by this value in order to calculate the sales tax cost.
Round to two decimal places since our total is in dollars and cents.
Last, add this value to the pre-tax value of the item to find the total cost.
Our answers check out; therefore they are correct. Now, let's use this information to solve the given problem.
Solution:
There are two ways to do this. The easiest way is to realize that the total cost is 107.5% of the price of the shirt. This is like saying, "What is 107.5% of 44?"