Question

A store charges 6% VAT on all sales.
What is the total cost of a shirt marked at $30​

Answer 1

$31.8

Explanation:

Assuming the 6% tax is separate from the $30, we can use this equation:

Total = Cost + Tax (pretty self explanatory)

Method 1

Total = $30 + (6% * $30)

Total = $30 + $1.8

Total = $31.8

Method 2

Total = $30 * 1.06 (The 1 is the original cost, the .06 is the 6% tax)

Total = $31.8