Use Exhibit 18-1 to determine the sales tax (in $) and calculate the total purchase price (in $) for the following item. (Round your answers to the nearest cent.)
| Item | Selling Price | Sales Tax | Total Purchase Price |
|------------|---------------| ----------|----------------------|
| Candy bar | $0.66 | $ | |
Answer (2)
Calculate the sales tax: S a l es T a x = $0.66 × 0.05 = $0.033 ≈ $0.03 .
Calculate the total purchase price: T o t a lP u rc ha se P r i ce = $0.66 + $0.03 = $0.69 .
The sales tax is $0.03.
The total purchase price is $0.69 .
Explanation
Understanding the Problem We are given the selling price of a candy bar as $0.66. We need to determine the sales tax and the total purchase price. Since Exhibit 18-1 is not provided, I will assume a sales tax rate of 5% for demonstration purposes. In reality, the sales tax rate would be obtained from Exhibit 18-1.
Calculating the Sales Tax First, we need to calculate the sales tax. The sales tax is calculated by multiplying the selling price by the sales tax rate. Assuming a sales tax rate of 5% (or 0.05), we have: S a l es T a x = S e ll in g P r i ce × S a l es T a x R a t e S a l es T a x = $0.66 × 0.05 S a l es T a x = $0.033 Rounding to the nearest cent, the sales tax is $0.03.
Calculating the Total Purchase Price Next, we calculate the total purchase price by adding the selling price and the sales tax: T o t a lP u rc ha se P r i ce = S e ll in g P r i ce + S a l es T a x T o t a lP u rc ha se P r i ce = $0.66 + $0.03 T o t a lP u rc ha se P r i ce = $0.69 Therefore, the total purchase price is $0.69.
Final Answer In summary, assuming a 5% sales tax rate, the sales tax for the candy bar is $0.03, and the total purchase price is $0.69.
Examples
Understanding sales tax and total purchase price is essential in everyday transactions. For example, when you buy groceries, clothes, or electronics, the listed price usually doesn't include sales tax. Knowing how to calculate the sales tax helps you budget your expenses accurately. If you purchase an item for $25 with an 8% sales tax, you can calculate the sales tax as $25 \times 0.08 = $2, making the total purchase price $25 + $2 = $27. This ensures you have enough money at the checkout and helps you understand where your money is going.
The sales tax for a candy bar priced at $0.66 is $0.03, making the total purchase price $0.69.
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