Sales tax is calculated by multiplying the price of an item by the

Sales tax is calculated by multiplying the price of an item by the

• A. Tax rate
• B. Discount
• C. Length
• D. Quantity

Answer: (A)

Sales tax is determined by multiplying the price of an item by the tax rate. The tax rate is the percentage set by the government that applies to the item's price. For example, a $50 item with an 8% tax rate results in $4 of tax, so the total cost is $54. A discount changes the price before tax, not the way tax is calculated; length has no relation to tax, and quantity affects the total amount paid but not the tax calculation per item.

Sales tax is determined by multiplying the price of an item by the tax rate. The tax rate is the percentage set by the government that applies to the item's price. For example, a $50 item with an 8% tax rate results in $4 of tax, so the total cost is $54. A discount changes the price before tax, not the way tax is calculated; length has no relation to tax, and quantity affects the total amount paid but not the tax calculation per item.