The Mathematics of Money

(Darren Dugan) #1

384 Chapter 9 Taxes



  1. Suppose that the state where Clay lives charges a 4% sales tax rate. Clay lives in Huron County, which charges
    a 3% sales tax in addition to the state tax. Five miles away in Champlain County, the county sales tax rate is also 3%,
    but clothing is specifi cally excluded from county sales tax.


Clay’s wardrobe consists mostly of ripped jeans and T-shirts with witty but off-color cartoons on them. He has just taken
a new job where he will need to dress business casual, and so he desperately needs to do some clothes shopping. If he
spends $650 before taxes, how much would he save by doing his shopping in Champlain County instead of Huron County?



  1. Calculate the missing subtotal, sales tax, and overall total for the receipt shown below. The sales tax on clothing is 4.5%
    and the sales tax on other items is 8.25%.

  2. Dan has budgeted $3,000 for materials to refi nish his basement. The sales tax rate in his area is 5%. How much can be
    afford to pay for materials before taxes and still fall within his budget?

  3. Gino’s Hots menu is shown here. Calculate the menu prices before tax.


Gino’s Hots

$5.25

$4.00

$7.50

$1.25

$2.50

Egg and Cheese Sandwich..........$3.75

Red Hot Hot................................

Bacon Cheese White Hot.............

Veggie Hot..................................

Dumpster Plate...........................
(2 hots, 2 burgers, mac salad,
fries, hot sauce)

All prices include 6.75% sales tax!

Sodas .........................................
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