Manning Inc.is contemplating the rental of a special tool for $3000 per month.If their tax rate is 35 per cent,what is the after-tax monthly cost of renting the tool?

Question

Quizplus · Accepted Answer

The after-tax monthly cost of renting the tool can be calculated by multiplying the rental cost by  (1 - tax rate):

After-tax cost = $3000 * (1 - 0.35) 
After-tax cost = $3000 * 0.65 
After-tax cost = $1950

Therefore, the after-tax monthly cost of renting the tool is $1950. Option A is the correct choice.