Calculating Sales Tax

Question

Use what you have learned about using proportional relationships to answer the following questions.

You are visiting one of the following states: Tennessee, Vermont, Wisconsin, or Wyoming. Each has a state sales tax on most items that are for sale in stores. While you are visiting, you decide to buy a board game to play with your hosts. The cost of the game is between $10 and $20, and it is not a whole dollar amount.

Decide the cost of the board game.
Choose one of the four states: Tennessee, Vermont, Wisconsin, or Wyoming.
Research to find your chosen state’s general sales tax. Note that some counties, towns, or cities may add more to the general sales tax, but you only need the general sales tax.
What is the total cost of the board game, including sales tax? Show your work.

Answer 1

Let's say you decided the cost of the board game is $15.50.

Now, we'll choose Wisconsin as the state for this example.

Step 1: Research the Sales Tax

As of October 2023, the general state sales tax rate in Wisconsin is 5.0%.

Step 2: Calculate Sales Tax

To calculate the sales tax, use the formula:

\[ \text{Sales Tax} = \text{Cost of Item} \times \text{Sales Tax Rate} \]

Substituting in the values we have:

\[ \text{Sales Tax} = 15.50 \times 0.05 = 0.775 \]

Step 3: Calculate Total Cost

Now, add the sales tax to the initial cost of the board game:

\[ \text{Total Cost} = \text{Cost of Item} + \text{Sales Tax} \]

Substituting the values:

\[ \text{Total Cost} = 15.50 + 0.775 = 16.275 \]

Since prices are usually rounded to two decimal places, we round the total cost:

\[ \text{Total Cost} \approx 16.28 \]

Final Answer

The total cost of the board game in Wisconsin, including sales tax, is approximately $16.28.