You purchase a shirt for $8.50. There is a 6% sales tax. What will be your total cost?

Solution:

Tax is the amount paid by the people to the government for goods and services provided. In any tax transaction, there are two parties involved - a taxpayer and a tax collector.

A taxpayer is a person or an organization who is paying the tax to the government. A tax collector is a government or any middleman collecting tax on behalf of the government.

Purchase price of a shirt = $8.50

Sales tax = 6% of purchase price

= 6 × 8.50/100

= $0.51

Total cost = purchase price + sales tax

= $8.50 + $0.51

= $9.01

Therefore, the total cost is $9.01

You purchase a shirt for $8.50. There is a 6% sales tax. What will be your total cost?

Summary:

You purchase a shirt for $8.50. There is a 6% sales tax. The total cost is $9.01