Suppose that the local sales tax rate is 3% and you purchase a car for 27,700, how much tax is paid
.03 * 27700
To calculate the amount of tax paid on a purchase, you need to multiply the purchase price by the tax rate. In this case, the local sales tax rate is 3%.
Step 1: Convert the tax rate to decimal form:
3% = 3/100 = 0.03
Step 2: Multiply the purchase price by the tax rate:
Tax = Purchase Price x Tax Rate
= $27,700 x 0.03
= $831
Therefore, the amount of tax paid on the car purchase is $831.