An electrician buys some wiring supplies that total $150.00 before tax. If the local sales… — Armed Services Vocational Aptitude Battery (ASVAB)

An electrician buys some wiring supplies that total $150.00 before tax. If the local sales tax rate is 8%, what is the total cost of the supplies including tax?

A
$12.00
B
$158.00
$162.00Answer
D
$270.00

Answer

$162.00

The correct answer is found by first calculating the sales tax, which is 8% of the

150.00 subtotal. Multiplying

150.00 by 0.08 gives a tax amount of

12.00. Then, this tax amount is added to the original cost (

150.00 +

12.00) to find the final total of

162.00.

Step-by-Step Solution

Calculate the amount of sales tax.

\$150.00 \times 0.08 = \$12.00

To find the tax, multiply the pre-tax cost by the decimal form of the percentage (8% = 0.08).

Add the tax amount to the original cost.

\$150.00 + \$12.00 = \$162.00

The total cost includes both the base price and the applied sales tax.

Key Concept

Calculating Sales Tax and Total Cost

Question

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Step-by-Step Solution

Key Concept

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