Question

You need to purchase a textbook for nursing school. The book cost 80.00, and the sales tax where you are purchasing the book is 8.25%. You have $100. How much change will you receive back?

• A. $5.20
• B. $7.35
• C. $13.40
• D. $19.95
• E. $21.25

Hint:

You can also calculate the total cost in one step by multiplying the original price by \((1 + \text{tax rate})\).
For example: \[ \$80 \times 1.0825 = \$86.60 \] This method can be slightly faster.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
This problem involves calculating the total cost of an item including sales tax, and then finding the change received from a payment.
Step 2: Key Formula or Approach:
1. Calculate the sales tax amount: \[ \text{Tax} = \text{Cost} \times \text{Tax Rate} \] 2. Calculate the total cost: \[ \text{Total Cost} = \text{Cost} + \text{Tax} \] 3. Calculate the change: \[ \text{Change} = \text{Amount Paid} - \text{Total Cost} \] Step 3: Detailed Explanation:
Step 1: Calculate the sales tax.
Book Cost = $80.00
Sales Tax Rate = 8.25% = 0.0825
\[ \text{Tax Amount} = \$80.00 \times 0.0825 \] \[ \text{Tax Amount} = \$6.60 \] Step 2: Calculate the total cost.
\[ \text{Total Cost} = \text{Book Cost} + \text{Tax Amount} = \$80.00 + \$6.60 = \$86.60 \] Step 3: Calculate the change.
Amount Paid = $100.00
\[ \text{Change} = \$100.00 - \$86.60 = \$13.40 \] Step 4: Final Answer:
You will receive $13.40 in change. The correct option is (C).