Question

suppose that the local sales tax rate is 4% and you purchase a car for $27,600. a. how much tax is paid? b. what is the cars total cost? a. the amount of tax paid is $blank. b. the total cost is $blank.

Explanation:

Step1: Calculate tax amount

Tax amount = Purchase price × Tax rate. Given purchase price = $27600$ and tax rate = $4\%=0.04$. So, tax amount = $27600\times0.04$.
$27600\times0.04 = 1104$

Step2: Calculate total cost

Total cost = Purchase price+ Tax amount. Purchase price is $27600$ and tax amount is $1104$. So, total cost = $27600 + 1104$.
$27600+1104=28704$

Answer:

a. $1104$
b. $28704$