Mick paid 2.94 in sales tax on an item that costs 42 dollars before tax. At that rate how much would he pay in sales tax for an item that costs 58.00
Accepted Solution
A:
Mick would pay $4.06 in sales tax for an item that costs $58.00.
This can be found by working backwards in the problem. By dividing that sales tax paid (2.94) by the dollars before tax (42), you get a percentage that should equal the percentage of the total paid for tax.
2.94 ÷ 42 = 0.07
This means that the sales tax is 7% of the total prior to tax. So we'd then multiply our dollars (58) with the sales tax in decimal form (0.07)