alleryStart learning →A new car is priced at $26,525, and the dealer adds $2,387.25 in sales tax. What is the sales tax rate?
A8.5%
B9.0%
C9.9%
D11.5%
Answer & Solution
Correct answer: B. 9.0%
1. The sales tax is a percent of the purchase price, so the rate is the tax divided by the price.
2. Divide: 2,387.25 divided by 26,525.
3. This gives exactly 0.09 as a decimal.
4. Move the decimal point two places to the right and add a percent sign: 9.0%.
5. Check: 0.09 x 26,525 = 2,387.25 dollars, matching the tax charged.
6. 8.5% and 9.9% come from small slips in the division, and 11.5% is the trap of dividing the price by roughly the tax times ten instead of the other way around.
_Source: OpenStax Prealgebra (CC BY 4.0), Ch 6 "Percents", section 6.3 Solve Sales Tax, Commission, and Discount Applications_
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