Question

an accountant is determining the amount of sales tax that his client, a shopkeeper, owes. the client reports that silver coat racks were sold at a price of $620 and that with sales tax, each one came out to $651. what is the sales tax percentage? write your answer using a percent sign (%).

Explanation:

Step1: Find the tax amount

Subtract the original price from the price with tax. So, \( 651 - 620 = 31 \).

Step2: Calculate the tax percentage

Use the formula \( \text{Tax Percentage} = \frac{\text{Tax Amount}}{\text{Original Price}} \times 100\% \). Substitute the values: \( \frac{31}{620} \times 100\% \). First, \( \frac{31}{620}=0.05 \), then \( 0.05\times 100\% = 5\% \).

Answer:

5%