Answer:
11%
Explanation:
A sales tax is placed on goods and services once the buyer and seller agree on what the exchange of currency is.
In this case you take the tax on the 1625 and not the 1803.75.
The buyer agreed to buy the item for 1625 and the seller agreed to sell it for that amount. So the tax goes on 1625.
Tax amount = total price - selling price
Tax amount = 1803.75 - 1625
Tax amount = 178.75
That's not what you want. You want the % of the tax.
% Tax = (Tax Amount / Selling Price) * 100
% Tax = (178.75 / 1625) * 100
% Tax = 0.11 * 100
% Tax = 11% Answer