Question

suppose that the local sales tax rate is 7% and you purchase a car for $18,000. a. how much tax is paid? b. what is the cars total cost? a. the amount of tax paid is $

Explanation:

Step1: Calculate tax amount

The tax rate is 7% or 0.07, and the car price is $18000. Tax amount = car - price×tax - rate. So, the tax amount is $18000×0.07 = $1260.

Step2: Calculate total cost

The total cost of the car is the sum of the car price and the tax amount. Total cost=car - price+tax - amount. So, the total cost is $18000 + $1260=$19260.

Answer:

a. $1260
b. $19260