Question

The city of Savannah recently increased their sales tax from 7% to 8%. How much more tax will you pay on a $20 purchase?

Answer 1

You will pay $0.20 (20 cents) more on a $20 purchase.

Step-by-step explanation

To find a percentage of any number we just need to multiply the number by the percentage and divide by 100

First, we'll find the 7% of $20:

`(7*20)/(100) =(140)/(100) =1.40`

Next, we'll find the 8% of $20:

`(8*20)/(100) =(160)/(100) =1.60`

Finally, we just need to subtract $1.40 form $1.60:

`Tax Increment=1.60-1.40=0.20`

We can conclude that after the increasing of sales tax from 7% to 8%, you will pay $0.20 (20 cents) more on a $20 purchase.