Question

determining the final cost of an item
the tax rate as a percent, r, charged on an item can be determined using the formula $\frac{c}{p}-1=r$, where c is the final cost of the item and p is the price of the item before tax. louise rewrites the equation to solve for the final cost of the item $c = p(1 + r)$. what is the final cost of a $40 item after an 8% tax is applied?
$

Explanation:

Step1: Identify given values

$p = 40$, $r = 0.08$

Step2: Substitute into final cost formula

$c = 40(1 + 0.08)$

Step3: Calculate the final cost

$c = 40 \times 1.08 = 43.2$

Answer:

$\$43.20$