Al purchases a speedboat costing $24,500. State taxes are 5.5% and federal excise tax is 13%. What is the total purchase price? (Round your answer to the nearest cent if necessary)

Answer: The total purchase price is $ 29,032

Step-by-step explanation:

Hi, to solve this problem you have to solve the percentages of each taxes first.

So:

state taxes = $24,500 * 5.5% = $1,347.5 federal tax = $24,500 * 13% = $3,185

The next step is adding the taxes results to the speedboat cost.

so:

speedboat = $24,500

speedboat + taxes = $24,500 + $1,347.5 + $3,185 = $29,032

The total purchse price for the speedboat is $29,032.