The Long family spent $38.62 for school supplies and $215.78 for new school clothes. They paid $6 \frac{4}{5} \% sales tax on their purchases. If the Long family paid $269.07 total, determine if they paid the correct amount.
a. The Long family paid $2.63 too little for their purchases.
b. The Long family paid the correct amount for their purchases.
c. The Long family paid $1.61 too much for their purchases.
d. The Long family paid $2.63 too much for their purchases.
Please select the best answer from the choices provided
Answer (2)
Calculate the total cost of the purchases before tax: 38.62 + 215.78 = 254.4 .
Calculate the sales tax amount: 254.4 × 0.068 = 17.2992 .
Calculate the total cost including tax: 254.4 + 17.2992 = 271.6992 ≈ 271.70 .
Compare the calculated total cost with the amount paid: 271.70 − 269.07 = 2.63 . The Long family paid $2.63 too little.
Explanation
Calculate the total cost before tax First, we need to calculate the total cost of the school supplies and school clothes. 38.62 + 215.78 = 254.4 So, the total cost before tax is $254.40 .
Calculate the sales tax amount Next, we need to calculate the sales tax amount. The sales tax rate is 6 5 4 % , which is equal to 6.8% or 0.068 as a decimal. 254.4 × 0.068 = 17.2992 So, the sales tax amount is $17.2992 .
Calculate the total cost including tax Now, we need to calculate the total cost including the sales tax. 254.4 + 17.2992 = 271.6992 Rounding to the nearest cent, the total cost is $271.70 .
Compare the calculated cost with the amount paid The Long family paid $269.07 . We need to compare this amount with the calculated total cost of $271.70 .
271.70 − 269.07 = 2.63 The Long family paid $2.63 too little.
Examples
Understanding sales tax calculations is essential for budgeting and making informed purchasing decisions. For instance, if you're buying a new laptop for $800 and the sales tax is 7% , you can calculate the tax amount ( 800 × 0.07 = $56 ) and the total cost ( $800 + $56 = $856 ). This ensures you have enough money to cover the purchase and helps you compare prices across different locations with varying tax rates.
The Long family paid $2.63 too little for their purchases after calculating the total cost including sales tax. The total before tax was $254.40, with a calculated tax of approximately $17.30, leading to a total of $271.70. They paid $269.07, which is $2.63 less than the total amount due.
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