A CD costs $17.95 plus tax. The sales tax rate is 7.5%. Find the total cost of the CD.
17.95 * 1.075 = ?
12
To find the total cost of the CD, we need to add the cost of the CD to the sales tax.
Step 1: Calculate the sales tax
The sales tax rate is 7.5%, which means we need to find 7.5% of $17.95.
To calculate the sales tax, we can use the formula:
Sales Tax = (Tax Rate/100) x Cost of the CD
Substituting the values, we have:
Sales Tax = (7.5/100) x $17.95 = 0.075 x $17.95 = $1.34625 (rounded to two decimal places)
Step 2: Add the cost of the CD and the sales tax
To find the total cost of the CD, we add the cost of the CD ($17.95) and the sales tax ($1.34625).
Total Cost = Cost of the CD + Sales Tax
Total Cost = $17.95 + $1.34625 = $19.29625 (rounded to two decimal places)
Therefore, the total cost of the CD is $19.30.