Question

The price of a new car is $42,500. If the sales tax rate is 6%, what is the total cost for the car including tax?

Answer 1

Answer: $45,050

Explanation:

First we multipy 0.06 (6%) by 42,500

$42,500 * 0.06 = $2550

This is the tax that must be applied to $42,500

Now all we need to do is add $2,550to $42,500 and we get:

$42,500 + $2,550 = $45,050