Question

20. What is the total cost of a $20 item after adding 5% sales tax?

A. $20.05
B. $21.00
C. $22.50
D. $25.00

Answer 1

Answer: Choice B

Work Shown:

1.05*20 = 21

The 1.05 represents an increase of 5% because

100% + 5% = 1.00 + 0.05 = 1.05