Question

suppose that the local sales tax rate is 7% and you purchase a car for $28,300.
a. how much tax is paid?
b. what is the car’s total cost?

a. the amount of tax paid is $\square .

Explanation:

Step1: Convert tax rate to decimal

The sales tax rate is 7%, which as a decimal is $0.07$ (since $7\%=\frac{7}{100} = 0.07$).

Step2: Calculate tax amount

To find the tax paid, multiply the purchase price by the tax rate. The purchase price is $\$28,300$, so the tax amount $T$ is calculated as $T = 28300\times0.07$.
Calculating the product: $28300\times0.07 = 1981$.

Answer:

1981