Question

If an item costs $45.99 before tax and $49.7 after tax, what is the tax rate? (Round to the nearest tenth of a percent)

Answer 1

Answer: 8.1%

Step-by-step explanation

The amount of tax is $49.70 - $45.99 = $3.71

Divide this over the original price to get the tax rate as a decimal.

3.71/45.99 = 0.0806697 approximately

Move the decimal point two spots to the right so we get a percentage.

We arrive at 8.06697% and then that rounds to 8.1% when rounding to the nearest tenth of a percent.