Question

An article retails for $38.50. The city sales tax is 4%, and the federal excise tax is 7%. How much is the total tax?

Answer 1

First you add the two tax percentages together- 11%
Then you must find what 11% of $38.50 is;
So, you multiply $38.50 by .11; which is the equivalent of 11% of the total.
This equals $4.235, which would be your total tax.

Answer 2

4/100; 38.50 x 0.04= $1.54
7/100; 38.50 x 0.07= $2.70

$1.54 + $2.70= $4.24