Midtown Antiques collects 3% sales tax on all sales. If total sales including tax are$1813.61, find the portion that is the tax amount.
Question
Midtown Antiques Sales Tax Calculation
Midtown Antiques collects 3% sales tax on all sales. If the total sales including tax are $1813.61, find the portion that is the tax amount.
Solution
To find the tax amount, we need to use the formula for the total amount which is:
Total Amount = Amount before Tax + Tax Amount
We know that the total amount is $1813.61 and the tax rate is 3%. We can express the tax rate as a decimal by dividing it by 100, so 3% becomes 0.03.
We can rearrange the formula to find the Amount before Tax:
Amount before Tax = Total Amount / (1 + Tax Rate)
Substituting the given values:
Amount before Tax = 1760
Now, we can find the Tax Amount by subtracting the Amount before Tax from the Total Amount:
Tax Amount = Total Amount - Amount before Tax
Tax Amount = 1760 = $53.61
So, the portion that is the tax amount is $53.61.
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