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Suppose that the local sales tax rate is 4%4% and you purchase a car for $13,600$13,600
Suppose that the local sales tax rate is 4%4% and you purchase a car for $13,600$13,600.
a. How much tax is paid?
b. What is the car's total cost?
Expert Solution
Given data
- The tax rate is r=4%r=4%
- The purchasing price is PP=$13600PP=$13600
a)
The expression for the tax amount.
At=Pp×rAt=Pp×r
Substitute the known values.
At=$13600×0.04=$544At=$13600×0.04=$544
b)
The expression for the total cost of the car.
Tc=Pp+AtTc=Pp+At
Substitute the known values.
Tc=$13600+$544=$14144
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