Question

An item costs $4 before tax and $4.32 after sales tax. What is the sales tax rate?

Answer 1

the sales tax rate is .8%

Answer 2

Price of item before tax = $4

Price of item after tax = $4.32

Difference = Price of item after tax-Price of item before tax= 4.32 - 4 = 0.32

Difference in price = $0.32

Now we have to find sales tax rate.

Sales tax rate if given by dividing the difference in price by original price and multiplying it by 100.

$Sales tax rate = \frac{Difference}{Original price}*100$

$Sales tax rate = \frac{0.32}{4}*100$

Sales tax rate = 8%

Answer: The sales tax rate of the item is 8%.