USE THE INFORMATION FOR THE NEXT QUESTION.
A state applies a 7 percent sales tax to consumer purchases of many items. These are data for a typical family:

-What average effective tax rate does the family pay?

Question

USE THE INFORMATION FOR THE NEXT QUESTION.
A state applies a 7 percent sales tax to consumer purchases of many items. These are data for a typical family:

-What average effective tax rate does the family pay?

Quizplus · Accepted Answer

The effective tax rate is the total tax paid divided by the total spending. In this case, the total tax paid is $56.84 and the total spending is $1,620. Therefore, the effective tax rate is (56.84/1,620) x 100 = 3.51%, which is closest to option B (3.5%).