You plan to buy $12,000 in computers at a local chain store. There are two stores located about the same distance from your office but in different cities with different tax rates. One city has a tax rate of 7% and the other has a tax rate of 8.5%.What percent can you save by going with the lower tax rate?

We are given two stores to select and this stores are located in the same distance but of different cities of different tax rates. One city has a tax rate of 7% and the other city has a 8.5%. in order to save, you need to choose a lower tax rate which is 7%. This saves you 1.5% as compared 8.5% of other city

Answer Link

JackelineCasarez JackelineCasarez · Answer 2 · 2019-02-20T10:58:16+01:00

Answer:

The percentage saved is 1.5% .

Step-by-step explanation:

As given

You plan to buy $12,000 in computers at a local chain store. There are two stores located about the same distance from your office but in different cities with different tax rates.

One city has a tax rate of 7% and the other has a tax rate of 8.5%.

As

7% is written in the decimal form .

[tex]= \frac{7}{100}[/tex]

= 0.07

Tax price at 7% tax rate = 0.07 × Cost of the computer

= 0.07 × 12000

= $ 840

8.5% is written in the decimal form .

[tex]= \frac{8.5}{100}[/tex]

= 0.085

Tax price with 8.5% tax rate = 0.085 × Cost of the computer

= 0.085 × 12000

= 1020

Change in the tax rate = Tax price with 8.5% tax rate - Tax price at 7% tax rate.

= 1020 - 840

= $180

[tex]Pecentage\ saved = \frac{Change\ in\ the\ tax\ rate\times 100}{Cost\ of\ the\ computers}[/tex]

[tex]Pecentage\ saved = \frac{180\times 100}{12000}[/tex]

[tex]Pecentage\ saved = \frac{18000}{12000}[/tex]

Percentage saved = 1.5%

Therefore the percentage saved is 1.5% .