The total price of a new car (including 5% sales tax) is $28,068. How much of this is tax? Round your answer to the nearest cent.
A) $1,333.23
B) $7,484,219.93
C) $2,806.80
D) $2,666.46
E) $1,336.57

Question

The total price of a new car (including 5% sales tax) is $28,068. How much of this is tax? Round your answer to the nearest cent. ​
A) $1,333.23
B) $7,484,219.93
C) $2,806.80
D) $2,666.46
E) $1,336.57

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. $28,068 / 1.05 = $26,731.43 (pre-tax price). The tax is $28,068 - $26,731.43 = $1,336.57.

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