Al purchases a speedboat costing $24,500. State taxes are 5.5% and federal excise tax is 13%. What is the total purchase price? (Round your answer to the nearest cent if necessary)

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Quizplus · Accepted Answer

The total purchase price is calculated by adding the state tax and the federal excise tax to the initial cost. State tax is 5.5% of $24,500, which is $1,347.50. Federal excise tax is 13% of $24,500, which is $3,185.00. Adding these taxes to the initial cost: $24,500 + $1,347.50 + $3,185.00 = $29,032.50.

Al Purchases a Speedboat Costing $24,500