Find the amount of the sales tax and the total cost.
Cost of Item
$300
Tax Rate
7%
To find the amount of sales tax, you would multiply the cost of the item by the tax rate. In your case, the cost of the item is $300, and the tax rate is 7% (which can be written as 0.07 in decimal form).
Sales Tax = Cost of Item × Tax Rate
Sales Tax = $300 × 0.07
Now calculate the sales tax:
Sales Tax = $300 × 0.07 = $21
The sales tax on the item is $21.
To find the total cost of the item including sales tax, you add the original cost of the item to the sales tax:
Total Cost = Cost of Item + Sales Tax
Total Cost = $300 + $21
The total cost of the item would be:
Total Cost = $300 + $21 = $321
So the total cost of the item, including a 7% sales tax, is $321.