Question

A pack of cinnamon-scented pencils sells for $5.00. What is the sales tax rate if the total cost of the pencils is $5.25?

Answer 1

The sales tax rate is 5%

Given:
Sales price = 5.00
Total amount paid = 5.25

Sales tax value = Total amount paid - sales price
= $5.25 - $5.00
Sales tax value = $0.25
Sales tax rate = Sales tax / Sales price
= 0.25/5
Sales tax rate = 0.05 or 5%