Question

A tax rate of 4% might be expressed in any of the following ways EXCEPT:

a. 4 mills
b. $4 per $100
c. $40 per $1,000
d. 40 mills

Answer 1

a. 4 mills

4% tax rate may be expressed as $4 per $100, $40 per $1,000, or 40 mills, but not as 4 mills, which would only represent a 0.4% tax rate.

Step-by-step explanation:

A tax rate of 4% might be expressed in several ways but not 4 mills. This term is not equivalent to the others listed. To explain, let's take a closer look at the different expressions:

• $4 per $100 - This translates to 4% because $4 is 4% of $100.
• $40 per $1,000 - Similarly, this also means 4% because $40 is 4% of $1,000.
• 40 mills - The term 'mill' represents one-thousandth of a dollar, or $0.001. Therefore, 40 mills would be equal to 40 x $0.001 = $0.04, which is 4% of a dollar. This is an accurate expression for a 4% tax rate.

However, 4 mills would be equivalent to 0.4% and not 4%, so this option does not express a 4% tax rate and is the correct answer to the question. In summary, the 4% tax rate may be accurately expressed as $4 per $100, $40 per $1,000, or 40 mills—but not 4 mills.