Calculate $7 \frac{1}{4} \% \operatorname{tax}$ on $1,540.
a. $11.17
b. $109.34
c. $111.65
d. $113.96
Answer (2)
Convert the tax rate to a decimal: 7 4 1 % = 7.25% = 0.0725 .
Multiply the decimal by the amount: 0.0725 × $1 , 540 .
Calculate the tax amount: $111.65 .
The correct answer is $111.65 .
Explanation
Understanding the problem First, we need to calculate the tax amount on $1,540 with a tax rate of 7 4 1 % .
Converting percentage to decimal We can express the tax rate as a decimal. 7 4 1 % is equal to 7.25% . To convert a percentage to a decimal, we divide by 100: 7.25% = 100 7.25 = 0.0725
Calculating the tax amount Now, we multiply the decimal by the amount to find the tax: 0.0725 × $1 , 540 = $111.65
Selecting the correct option Comparing the result with the options, we see that the correct answer is $111.65.
Examples
Imagine you are buying a new laptop for $1,540 and the sales tax is 7 4 1 % . Calculating the tax helps you determine the final cost of the laptop, including the tax. This ensures you know exactly how much money you need to make the purchase. Understanding percentage calculations is crucial in everyday financial transactions, from shopping to investing.
The sales tax on $1,540 at the rate of 7 4 1 % amounts to $111.65. This was calculated by converting the percentage to a decimal and multiplying it by the total amount. Therefore, the correct option is c. $111.65.
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