Actually Applicable Application Problems and Brainteasers/Sales Tax

Overview

Many countries, states, and locations within states charge sales tax, which is a small percentage added onto each purchase (or each purchase of some kinds; some types of purchases, such as prescription medicines, are often exempt). The store is required to contribute this money to the government's budget on a regular schedule, such as quarterly. This is definitely an Actually Applicable type of application problem since it deals both with what you pay for things you need and how the government pays for things it needs.

General Method

1. Convert the tax percentage to a decimal.
2. Multiply the subtotal by the tax decimal to find the tax charge.
   1. Round the tax charge to dollars and cents, if necessary.
3. If you are need the total amount paid, add the tax charge to the subtotal.

Problems

For a subtotal of $37.48, if the sales tax rate is 7.5%, how much sales tax is charged? What is the total amount paid?

For a subtotal of $14.37, if the sales tax rate is 9.25%, how much sales tax is charged? What is the total amount paid?

Make Your Own Problem

Choose something you would like to buy and find out what its cost will be, including sales tax.

Next time you buy something, check the receipt for the sales tax and verify that it was calculated correctly.