Question

The city of Atlanta recently increased their sales tax from 7.5% to 8%. How much more tax would you pay on a $10 purchase?
A) $.01
B) $.05
C) $.07
D) $.50

Answer 1

Answer is B
find how much tax you pay at both rates
10(0.075)=.75
10(0.08)=.8
then subtract
0.8-0.75=0.05
so the answer is B, you would pay $0.05 more

Answer 2

Answer

Find out the  how much more tax would you pay on a $10 purchase .

To prove

As given

The city of Atlanta recently increased their sales tax from 7.5% to 8%.

Purchase price = $10

7.5 % is written in the decimal form

$= \frac{7.5}{100}$

= 0.075

Tax price on $10 purchase price  when tax rate 7.5% = 0.075 × 10

                                                                                        =  0.75

8 % is written in the decimal form

$= \frac{8}{100}$

= 0.08

Tax price on $10 purchase price  when tax rate 8 % = 0.08 × 10

                                                                                        =  0.8

Increase in tax price on $10 purchase = $0.8 - $0.75

                                                              = $ 0.05

Therefore increase in tax price on $10 purchase is $0.05

The option (B) is correct.