Question

You plan to buy $12,000 in computers at a local chain store. There are two stores located about the same distance from your office but in different cities with different tax rates. One city has a tax rate of 7% and the other has a tax rate of 8.5%.

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What percent can you save by going with the lower tax rate? Round your answer to the nearest tenth of a percent, if necessary.

0.75%
1.25%
1.4%
1.5%

Answer 1

We are given two stores to select and this stores are located in the same distance but of different cities of different tax rates. One city has a tax rate of 7% and the other city has a 8.5%. in order to save, you need to choose a lower tax rate which is 7%. This saves you 1.5% as compared 8.5% of other city