Ben bought an item in a grocery store marked at $8, and the total bill with sales tax was $8.28. What was the sales tax rate?
The sales tax rate was 3.50%.
The total bill of $8.28 indicates that the sales tax added $0.28 to the original price of $8. To find the sales tax rate, we calculate the ratio of the tax amount to the original price: ($0.28 / $8) * 100 = 3.5%, confirming the rate.
This choice represents an incorrect calculation. A 35% sales tax on an $8 item would result in a total of $10.80, which is significantly higher than the total bill of $8.28.
While 7% is a common sales tax rate in many jurisdictions, applying it to an $8 purchase would yield a total of $8.56 ($8 + $0.56 in tax), which again exceeds the total bill of $8.28.
This is the correct answer. The sales tax of $0.28 on an $8 item represents a 3.5% tax rate, calculated as ($0.28 / $8) * 100. This matches the total bill of $8.28 accurately.
This percentage incorrectly reflects a lower tax burden. A 2.80% sales tax on $8 would only add $0.224, resulting in a total of $8.224, which does not match the given total of $8.28.
Calculating the sales tax requires an understanding of how percentages apply to the original price. In this scenario, the correct sales tax rate of 3.50% accurately reflects the additional amount paid, demonstrating the importance of precise calculations in determining tax rates in financial transactions.
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