Question

The sales tax for an item was $20 and it cost $500 before tax. Find the sales tax rate. Write your answer as a percentage.

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Answer 1

Answer: To find the sales tax rate as a percentage, we can use the following formula:

Sales Tax Rate = (Sales Tax / Cost Before Tax) * 100%

In this case, the sales tax is given as $20, and the cost before tax is $500. Plugging these values into the formula, we have:

Sales Tax Rate = ($20 / $500) * 100%

Simplifying the expression:

Sales Tax Rate = (0.04) * 100%

Sales Tax Rate = 4%

Therefore, the sales tax rate for the item is 4%.

Explanation: