Q1. - Algebra 1

Question

Horatio is purchasing a computer cable for \(15.49. If the sales tax rate in his state is 5.25%, what is the total cost of the purchase?

 

A. \)16.42
B. \(16.30

C. \)15.73

D. $15.62

Step-by-Step Solution

Answer

The total cost of purchase is option B. $16.30.

Step 1. State the concept of sales tax.

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase.

 $\text{Sales\hspace{0.17em}\hspace{0.17em}tax = sales\hspace{0.17em}\hspace{0.17em}tax\hspace{0.17em}\hspace{0.17em}rate\hspace{0.17em}\hspace{0.17em}×\hspace{0.17em}\hspace{0.17em}cost\hspace{0.17em}\hspace{0.17em}price of computer cable}$

Step 2. Calculate the sales tax.

The sales tax rate is $5.25\%=\frac{5.25}{100}$.

 $$\begin{gathered} \text{Sales\hspace{0.17em}\hspace{0.17em}tax}=\frac{5.25}{100}\times 15.49 \\ =\$0.813 \end{gathered}$$

Step 3. Calculate the total cost of computer cable.

The total cost of purchase is calculated as follows.

$$\begin{gathered} \text{Total\hspace{0.17em}\hspace{0.17em}cost\hspace{0.17em}\hspace{0.17em}of\hspace{0.17em}\hspace{0.17em}computer\hspace{0.17em}\hspace{0.17em}cable = Cost\hspace{0.17em}\hspace{0.17em}of\hspace{0.17em}\hspace{0.17em}computer\hspace{0.17em}\hspace{0.17em}cable + sales\hspace{0.17em}\hspace{0.17em}tax} \\ \text{=15.49+0.813} \\ \text{=16.303} \\ \approx \$\text{16.30} \end{gathered}$$                                                                                                        

Therefore the total cost of the purchase is $16.30.

 

Hence option B is correct.