To calculate the sales tax and the total cost of the shirt after tax, you can use the following steps:
-
Calculate the sales tax:
Sales tax = Price of the shirt × Sales tax rate
Sales tax = $20 × 0.07 = $1.40 -
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.