Question

if massachusetts has a sales tax of 6 percent and new hampshire has no sales tax, how much money can de saved by buying a $1,000 television in new hampshire?

Explanation:

Step1: Identify the tax rate and purchase amount

The sales tax rate in Massachusetts is 6%, and the purchase amount is $1,000. In New Hampshire, there is no sales tax. We need to find the tax amount in Massachusetts and then determine the savings.

Step2: Calculate the sales tax in Massachusetts

The formula for sales tax is \( \text{Tax Amount} = \text{Purchase Amount} \times \text{Tax Rate} \). Substituting the values, we get \( \text{Tax Amount} = 1000 \times 0.06 \).

Step3: Compute the tax amount

\( 1000 \times 0.06 = 60 \). So the tax in Massachusetts is $60. Since New Hampshire has no tax, the savings is equal to the tax amount in Massachusetts.

Answer:

\$60