You buy a shirt for $20. If the sales tax is 7%, what is the amount of tax (in dollars)? What is the cost of the shirt after tax?

Sales tax = $1.40; Cost of shirt after tax = $21.40
Sales tax = $140; Cost of shirt after tax = $160
Sales tax = $21.40; Cost of shirt after tax = $41.40
Sales tax = $14; Cost of shirt after tax = $34

1 answer

To calculate the sales tax and the total cost of the shirt after tax, you can use the following steps:

  1. Calculate the sales tax:
    Sales tax = Price of the shirt × Sales tax rate
    Sales tax = $20 × 0.07 = $1.40

  2. Calculate the total cost after tax:
    Total cost after tax = Price of the shirt + Sales tax
    Total cost after tax = $20 + $1.40 = $21.40

So, the correct calculations are:

  • Sales tax = $1.40
  • Cost of shirt after tax = $21.40

The first option (Sales tax = $1.40; Cost of shirt after tax = $21.40) is the correct answer.