basic math skills lesson 10: sales tax p. 150-151
TRANSCRIPT
Basic Math SkillsLesson 10: Sales Tax
p. 150-151
Definitions
Sales tax: money paid as tax when you buy an item
Tax rate: the percent charged as tax
Sales Tax
Most states charge a sales tax on items a consumer buys. The consumer pays this tax. The tax rate is a percent of the price to be added to the price. With sales tax, you round any part of a cent up instead of to the nearest cent.
Example
A poster costs $10.90. Tax rate 5%.
Tax: $10.90 x .05 = $0.545 rounded up to $0.55
Price with tax: $10.90 + $0.55 = $11.45