Spiros purchases a Rolex watch costing $10,600. State taxes are 4.5% and the federal excise tax is 11%. What is the total purchase price?

Name: Spiros purchases a Rolex watch costing $10,600. State taxes are 4.5% and the federal excise tax is 11%. What is the total purchase price?
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Question

Quizplus · Accepted Answer

First, calculate the state tax: $10,600 * 4.5% = $477. Then, calculate the federal excise tax: $10,600 * 11% = $1,166. Add these taxes to the original price: $10,600 + $477 + $1,166 = $12,243.

Spiros Purchases a Rolex Watch Costing $10,600