An item costs $ 340 before tax, and the sales tax is $ 10.20 . what is the sales tax rate

Mathematics · College · Thu Feb 04 2021

Answered on

Given:

An item costs $ 340 before tax, and the sales tax is $ 10.20.

Determine the tax rate.

Solution:

In order to determine the sales tax rate, we simply need to divide the sales tax by the original item cost.

= $10.20/$340

= 0.03

Since we are given a decimal answer, in order to convert it into percentage, we multiply the decimal by 100. Hence, in converting a percentage into decimal, we divide the percentage by 100.
= (0.03)(100)

= 3%

Final answer:

The sales tax rate is 3%