Question

Caitlin spent $34.00 on compact discs. The sales tax rate was 6.5% what was the sales tax?

Answer 1

If $34 was the sale price, then she would have to pay

$34(1+0.065) = $36.21 so the sales tax would be $36.21-34 = $2.21

If $34 was what she spent (according to question wording), then the sales tax is included in the $34. The actual price of the compact discs are then

$34/(1.065) = 31.92, and the sales tax was $34-31.92 = $2.08.