The Mathematics of Money

Example 9.1.8 Use the 5% sales tax table shown above to calculate the tax on

a $34.74 purchase.

For the 74 cents, the tax from this table is $0.04.

For the $4.00, the tax from this table is $0.20.

For the $30.00, the tax from this table is 3($0.50)  $1.50.

So the total tax is $1.50 
 $0.20 
 $0.04  $1.74.

While these tables offered somewhat easier arithmetic when it had to be done with pencil

and paper or simple adding machines, in the present day there is not much reason to use

these charts. Most businesses are equipped with cash registers that can calculate sales

tax automatically, and even when a price quote or sale is made without a cash register,

calc ulators are in such common use that the arithmetic is not much of an issue any more.

Nonetheless, sales tax tables are still sometimes used.

Exercises 9.1 381

A. Calculating Sales Tax

1. Find the sales tax on a purchase of $147.35 if the sales tax rate is 8%.


2. Find the sales tax on an $87.29 purchase if the sales tax rate is 6.5%.


3. Find the sales tax on a $25.02 purchase if the sales tax rate is 8^3 ⁄ 8 %.


4. Find the sales tax on a $41.04 purchase if the sales tax rate is 4^3 ⁄ 4 %.


5. Bill bought a DVD player for $49.99, a TV for $149.99, and a rice cooker for $39.95. The sales tax rate is 6^3 ⁄ 4 %. Find
   the total amount of his purchase, including tax.


6. Shenara bought a blouse for $79.88 and a bracelet for $49.95. The sales tax rate is 7.25%. Find the total amount of
   her purchase, including tax.


7. At a discount store, Ed bought a tool kit for $17.59, a fi le drawer for $21.35, and a case of granola bars for $9.35.
   The general sales tax rate is 9%, but the sales tax on food is 2^3 ⁄ 8 %. Calculate (a) the total sales tax Ed will pay on this
   purchase and (b) the total amount of the purchase including tax.


8. Chelsea bought two music CDs for $12.99 each, a pair of jeans for $17.99, and a swim suit for $21.99. The general
   sales tax rate is 8.25%, but the sales tax on clothing is just 4%. Calculate the total amount of her purchase, including
   sales tax.

EXERCISES 9.1

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