A winter coat costs $250 in a city where the sales tax rate is 8.2% of the purchase price. How much sales tax is charged?
A$18.50
B$25.00
C$20.05
D$20.50
Answer & Solution
Correct answer: D. $20.50
1. The sales tax equals the tax rate times the purchase price.
2. Change 8.2% to a decimal: 0.082.
3. Multiply: 0.082 x 250 = 20.50, so the tax is $20.50.
4. $20.05 is the trap of writing 8.2% as 0.0802 instead of 0.082.
_Source: OpenStax Prealgebra (CC BY 4.0), Ch 6 "Percents", section 6.3 Solve Sales Tax, Commission, and Discount Applications_
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