How to Calculate Sales Tax and Total Purchase Cost

TL;DR

To calculate sales tax, convert the tax rate from a percentage to a decimal and multiply it by the item's price. Add the sales tax to the original price to find the total cost of the purchase. For example, a $499 laptop with an 8% tax has a sales tax of $39.92, making the total $538.92.

Transcript

in this video we're going to talk about how to calculate sales tax and also the final price of a purchase so let's start with this problem Sam purchases a laptop for 499 dollars the tax rate is eight percent how much will Sam pay in sales taxes the first thing we need to do is convert percentage into a decimal so what is eight percent as a decimal ... Read More

Key Insights

• 👈 Converting a tax rate from a percentage to a decimal is done by dividing the percentage by 100 or moving the decimal point two places to the left.
• 🚕 To calculate the amount of sales tax, multiply the price of the item by the tax rate in its decimal form.
• 🚕 The final price of a purchase is obtained by adding the price of the item to the amount of sales tax.

Summary & Key Takeaways

• The video provides a detailed explanation of how to calculate sales tax and the final price of a purchase.

• It starts by explaining the process of converting a tax rate from a percentage to a decimal.

• The video then demonstrates how to calculate the amount of sales tax and add it to the original price to find the final price.