The city of Savannah recently increased their sales tax from 7% to 8%. How much more tax will you pay on a $20 purchase?
Responses
A$0.10
$0.10
B$0.20
$0.20
C$0.75
$0.75
D$0.80
$0.80
E$1.60
To find out how much more tax you will pay on a $20 purchase, you need to calculate the difference between the 7% tax and the 8% tax.
7% of $20 = $1.40
8% of $20 = $1.60
The difference between $1.60 and $1.40 is $0.20.
Therefore, you will pay an additional $0.20 in tax on a $20 purchase.
So, the correct answer is B$0.20 or $0.20.