To calculate the sales tax on a watch that costs $40 with a sales tax rate of 6.5%, you can use the following formula:
\[ \text{Sales Tax} = \text{Cost} \times \left(\frac{\text{Tax Rate}}{100}\right) \]
Substituting the values:
\[ \text{Sales Tax} = 40 \times \left(\frac{6.5}{100}\right) \]
Calculating the tax:
\[ \text{Sales Tax} = 40 \times 0.065 = 2.6 \]
So, the sales tax will be $2.60.