Given:
The formula for total cost is
[tex]T=p+\dfrac{s}{100}p[/tex]
where, p is the price of item and s is the sales tax rate (as a percent).
You pay $14.77 for an item priced at $14.
To find:
The the tax rate.
Solution:
You pay $14.77 for an item priced at $14. So,
Total cost (T) = $14.77
Price of item (p) = $14
Putting T=14.77 and p=14 in given formula, we get
[tex]14.77=14+\dfrac{s}{100}(14)[/tex]
[tex]14.77-14=\dfrac{s}{100}(14)[/tex]
[tex]0.77=\dfrac{s}{100}(14)[/tex]
Multiply both sides by 100.
[tex]77=14s[/tex]
Divide both sides by 14.
[tex]\dfrac{77}{14}=s[/tex]
[tex]5.5=s[/tex]
Therefore, the tax rate is 5.5%.
