Question

A souvenir mug sells for $8.00 at a hotel gift store.Kendra gives the clerk $9.00 and recives $0.56 un change.What is the sales tax rate?

Answer 1

5.5%

Explanation:

A souvenir mug sells for $8.00 at the hotel gift store.

Kendra gives the clerk $9.00 and receives $0.56 as a change.

So, Kendra has to pay $(9.00 - 0.56) = $8.44 for the mug.

Therefore, the souvenir bug's after-tax price is $8.44 while its original price is $8.00.

So, sale tax rate is
`(8.44 - 8.00)/(8.00) * 100 = 5.5`%. (Answer)