The total price of a new car (including 5% sales tax) is $23,456. How much of this is tax? Round your answer to the nearest cent.
A)$1,114.16
B)$5,226,747.39
C)$2,345.60
D)$2,228.32
E)$1,116.95

Question

The total price of a new car (including 5% sales tax) is $23,456. How much of this is tax? Round your answer to the nearest cent. ​
A)$1,114.16
B)$5,226,747.39
C)$2,345.60
D)$2,228.32
E)$1,116.95

Quizplus · Accepted Answer

To find the tax amount, divide the total price by 1.05 to find the pre-tax price, then subtract this from the total price. $23,456 / 1.05 = $22,339.05 (pre-tax price). The tax is $23,456 - $22,339.05 = $1,116.95.

The Total Price of a New Car (Including 5% Sales