Question

The sales tax for an item was $8.40 and it cost $420 before tax. Find the sales tax rate. Write your answer as a percentage.

Answer 1

2 % is the tax rate

Explanation:

The sales tax is equal to the original price of the item times the sales tax rate

sales tax= original price * tax rate

We know the original price and the sales tax

8.4 = 420 * tax rate

Divide each side by 420

8.4/420 = 420/420 * tax rate

.02 = tax rate

Multiply by 100% to get in percent form

2 % is the tax rate