Patient is at your store buying a glucose monitor. The item sells for $69.99. After tax their total is $75.94. What is the tax rate ?
Reply (by Keith)
The way to find out the tax rate is to take the total and divide it by the selling price.
75.94 ÷ 69.99 = 1.085 (Anything after the decimal is the tax.)
To check your answer, take 69.99 and multiply it by the tax rate and add it all up.
In this case
69.99 X .085 = 5.95
69.99 + 5.95 = 75.94
Remember to round everything up to the hundredths as you do your calculations. That probably sounds silly because we're using 8.5%, which is .085. However. since our money only goes to .01, we round final financial calculations up to the nearest cent (.01)