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.

1 answer

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.