What equation would be used to calculate the sales tax amount if the purchase price is $32 and there is a 4% sales tax?
Question
What equation would be used to calculate the sales tax amount if the purchase price is $32 and there is a 4% sales tax?
Solution
1. Break Down the Problem
To calculate the sales tax amount, we need to find out how much sales tax is applied to the purchase price of $32 at a rate of 4%.
2. Relevant Concepts
The formula to calculate sales tax is given by: where the sales tax rate should be expressed as a decimal for the calculation.
3. Analysis and Detail
- Identify the purchase price:
- Convert the sales tax rate from a percentage to a decimal:
- Substitute these values into the sales tax formula:
4. Verify and Summarize
Now, perform the multiplication: Therefore, the sales tax amount is $1.28.
Final Answer
The sales tax amount on a purchase price of 1.28**.
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