1. The problem is to find the formula to calculate sales tax.
2. Sales tax is a percentage of the price of an item that is added to the original price.
3. The formula to calculate sales tax is:
$$\text{Sales Tax} = \text{Price} \times \frac{\text{Tax Rate}}{100}$$
4. Here, \text{Price} is the original cost of the item, and \text{Tax Rate} is the sales tax percentage.
5. To find the total price including tax, use:
$$\text{Total Price} = \text{Price} + \text{Sales Tax} = \text{Price} \times \left(1 + \frac{\text{Tax Rate}}{100}\right)$$
6. Important rules:
- Always convert the tax rate percentage to a decimal by dividing by 100.
- Multiply the price by this decimal to get the sales tax amount.
- Add the sales tax to the original price to get the total cost.
This formula helps you calculate how much extra you pay due to sales tax.
Sales Tax Formula 2474Ef
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