Q45. - Algebra 1

Question

OPEN-ENDED Write a real-world problem to find the total price of an item including sales tax.

Step-by-Step Solution

Answer

A car is sold at a price of $8000 dollars with a sales tax of 10% the price paid by the buyer will be $8800.

Step 1. Apply the concept of sales tax.

Sales tax is a tax that is added to the price of the item the final price is called selling price. It is a percent of the increase in the cost.

Step 2. Construct an example.

Sales tax is levied on goods and services purchased at a store. 

If in a showroom a car is priced at $8000 and a 10% sales tax is applicable then the price that buyer will have to pay for the car will be calculated as follows:

Let x represent the new price after adding taxes then we have:

$\begin{array}{l}x=610\%\text{ of Cost + Cost}\\ x=10\%\times \$8000+\$8000\\ x=\frac{10}{100}\times 8000+8000\\ x=800+8000\\ x=\$8800\end{array}$

Thus, the total cost of a car is $8800.