Question

A canoe has a list price of $389.99
before tax. If the sales tax rate is 6.25%
find the total cost of the canoe with sales tax included.
$414.36
$24.37
$414.00
$243.74

Round your answer to the nearest cent, if necessary.

Answer 1

To calculate the total cost of the canoe with sales tax included, you can follow these steps:

1. **Calculate the sales tax**:
\[
\text{Sales Tax} = \text{List Price} \times \text{Sales Tax Rate}
\]
Given:
- List Price = $389.99
- Sales Tax Rate = 6.25% = 0.0625

\[
\text{Sales Tax} = 389.99 \times 0.0625 = 24.3736875
\]

2. **Round the sales tax to the nearest cent**:
\[
\text{Sales Tax} \approx 24.37
\]

3. **Calculate the total cost**:
\[
\text{Total Cost} = \text{List Price} + \text{Sales Tax}
\]
\[
\text{Total Cost} = 389.99 + 24.37 = 414.36
\]

So, the total cost of the canoe with sales tax included is **$414.36**.