Question

Regina purchases a new ceiling fan. The fan cost $79.95 before tax. The sales-tax rate in her city is 7.25%. What is the total cost of Regina’s purchase?

Answer 1

$85.75

Explanation:

79.95x0.0725=5.796

The tax computation must be carried to the third decimal place and rounded up to the next whole cent when the third decimal place is greater than 4. Since the third decimal place is greater than 4, the tax due must be rounded up to the next whole cent. Therefore, the added tax is %5.80.

$79.95+$5.80=$85.75