A woman owns a small, cash-only business in a state that requires her to charge 5% sales tax on each item she sells. At the beginning of the day, she has $200 in the cash register. At the end of the day, she has $1,103 in the register. How much money should she send to the state government for the sales tax she collected?
0.05(1103 - 200) = $_________
To determine how much money the woman should send to the state government for the sales tax she collected, we need to find the total sales for the day and calculate 5% of that amount.
Here's how to do it step-by-step:
Step 1: Calculate the total sales for the day
To find the total sales for the day, we need to subtract the initial cash in the register from the final amount.
Final amount - Initial amount = Total sales
$1,103 - $200 = $903 (Total sales)
Step 2: Calculate the sales tax amount
To determine the sales tax amount, we multiply the total sales by the 5% sales tax rate.
Sales tax amount = Total sales x Sales tax rate
Sales tax amount = $903 x 5%
Sales tax amount = $903 x 0.05
Sales tax amount = $45.15
Therefore, the woman should send $45.15 to the state government for the sales tax she collected.