Sherrie purchases a sports car costing $72,500. State taxes are 4.5% and federal excise tax is 14%. What is the total purchase price?

Question

Quizplus · Accepted Answer

The total purchase price includes the base price plus state and federal taxes. State tax is 4.5% of $72,500, which is $3,262.50. Federal excise tax is 14% of $72,500, which is $10,150. Adding these to the base price: $72,500 + $3,262.50 + $10,150 = $85,912.50.

Sherrie Purchases a Sports Car Costing $72,500