Because of the sales tax in a particular region, a customer in a supermarket must pay $1.46 for a package of candy marked $1.35. What is the effective tax rate on this purchase, expressed as a percentage?

Question

Theodore

Business

17 March, 12:43

Because of the sales tax in a particular region, a customer in a supermarket must pay $1.46 for a package of candy marked $1.35. What is the effective tax rate on this purchase, expressed as a percentage?

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Answers (1)

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Pinto · Answer 1

Effective Tax rate is 8.15%

Explanation:

Candy Marked Price = $1.35

Customer has to pay = $1.46

Tax amount in the price = $1.46 - $1.35

Tax amount in the price = 0.$11

Effective Tax rate as Percentage = ($0.11 / $1.35) x 100

Effective Tax rate as Percentage = 0.0815 x 100

Effective Tax rate as Percentage = 8.15%

Check:

Price inclusive of Tax = 1.35 x (1 + 8.15%)

Price inclusive of Tax = 1.35 x (1 + 0.0815)

Price inclusive of Tax = 1.35 x 1.0815

Price inclusive of Tax = $1.46