How do I calculate the tax rate if the cost of the product is $69.99 and the total cost of the product after tax is $75.94?
Reply (by Keith)
This throws everyone off at first. In this case, what you're trying to do is figure what percentage the higher number is of the lower number. Obviously it will be over 100% of that number since it's larger. Therefore, the amount over the first 100% is the "extra" and that will be the "rate" you are trying to determine.
75.94 ÷ 69.99 = 1.085
(now what is behind the one?)
So 8.5% is the tax rate
Another way to think about it to ask:
"how many times does 69.99 go into 75.94? Which it does 1.085 times?"