A new oven is priced at $628.30. The sales tax rate is 7%. What is the cost of the sales tax on the new oven?
Understand the Problem
The question asks to calculate the sales tax on a new oven given its price and the sales tax rate. We need to find 7% of $628.30 to determine the cost of the sales tax.
Answer
$43.98
Answer for screen readers
$43.98
Steps to Solve
- Convert the percentage to a decimal
To convert 7% to a decimal, divide 7 by 100: $7/100 = 0.07$
- Multiply the oven price by the sales tax rate (in decimal form)
Multiply the price of the oven, $628.30, by the decimal form of the sales tax rate, 0.07: $628.30 \times 0.07= 43.981$
- Round to the nearest cent
Since we're dealing with money, we round to the nearest cent (two decimal places): $43.981 \approx 43.98$
$43.98
More Information
Sales tax is a percentage of the purchase price that is collected by the seller and remitted to the government. It is a consumption tax, meaning it is paid by the consumer at the time of purchase
Tips
A common mistake is forgetting to convert the percentage to a decimal before multiplying. For example, multiplying $628.30 by 7 instead of 0.07 would give a much larger and incorrect answer. Also, not rounding to the nearest cent when dealing with currency is a common mistake.
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