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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
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Date: Thursday, 3 April 2025, 10:13 PM

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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
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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%