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Sales Tax and Commission Exercises

Site: Saylor Academy
Course: RWM101: Foundations of Real World Math
Book: Sales Tax and Commission Exercises
Printed by: Guest user
Date: Sunday, May 19, 2024, 2:31 PM

Description

Complete this assessment to practice calculating sales tax and commissions. Be sure to check your answers.

Table of contents

Sales Tax and Commission

  1. A person purchase a television for $674.99. What is the sales tax amount if the sales tax rate is 8.95%?

  2. The total price paid for a dining table was $913.62. The price tag indicated  a purchase price of $843.99. What is the sales tax rate?

  3. A sales person sells $2,973.56 worth of home appliances in one week. His commission rate is 15.75%. How much commission did he earn?

  4. A recent paycheck showed that a sales clerk earned $1,234.53 for one month of sales. If the sales clerk sold $18,705.00 worth of merchandise, What is the commission rate?

Source: Algebra2Go, https://www.saddleback.edu/faculty/Lperez/Algebra2Go/prealgebra/ratios/salestaxcommHW.pdf
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 License.

Answers

  1. Recall: (%) · (Total) = (Portion)
    (% Tax) · (Purchase Price) = (Amount of Sales Tax)
    So to find the amount of sales tax, multiply the "%Tax" by the "purchase price"
    \text{(Amount of sales tax}) = (0.0895) \cdot (674.99) = $60.41
    Note: 8.95% = 0.0895

  2. (The Amount of Sales Tax) = (Total price) - (Purchase price)
    =913.62 - 843.99 = 69.63
    (Amount of sales Tax) = (Purchase price) · (% Tax)
    \frac{69.63}{843.99} = \frac{843.99 \cdot x }{843.99}
    0.0825 = x
    x = 8.25\% Sales Tax Rate.

  3. (The Amount of commission) = (% Commission) · (Total sales)
    =(0.1575) \cdot (2,973.56)
    = 468.34
    $468.34

  4. (The Amount of commission) = (% Commission) · (Total sales)
    1,234.53 = x \cdot 18,705.00
    \frac{1,234.53}{18,705.00} = \frac{18,705.00x}{18,705.00}
    0.066 = x
    Therefore the commission rate is 6.6%