The city council has decided to add a 0.3% tax on motel and hotel rooms. If a traveler spends the night in a motel room that costs $55 before taxes, how much will the city receive in taxes from him?
55 * 0.003 = $0.165
Would that equal out to be 21 cents somehow?
Nope. $0.165 is 16.5 cents.
55/3*3=100%
To calculate the amount of tax that the traveler will pay, you need to multiply the cost of the motel room by the tax rate. In this case, the tax rate is 0.3%.
Step 1: Calculate the tax amount.
Multiply the cost of the motel room by the tax rate (0.3% or 0.003).
Tax amount = Cost of motel room * Tax rate
Tax amount = $55 * 0.003
Step 2: Calculate the amount the city will receive.
The tax amount represents the portion that the city will receive.
City's tax revenue = Tax amount
Therefore, the city will receive:
City's tax revenue = $55 * 0.003
City's tax revenue = $0.165
The city will receive $0.165 in taxes from the traveler.