Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

Question

Quizplus · Accepted Answer

The sales tax is 5% of $8,000 which is $400. 
The excise tax is 7% of $8,000 which is $560. 
Adding the cost of the coat, sales tax, and excise tax, we get: 
$8,000 + $400 + $560 = $8,960. 
Then adding the $15 insurance charge gives a total purchase price of $8,975, so the correct answer is choice C.

Kris Bought a New Fur Coat for $8,000