Question

An item is priced at $13.93. If the sales tax is 5%, what does the item cost including sales tax? If necessary, round to the nearest cent.
A.
$14.63
B.
$14.97
C.
$14.54
D.
$13.13

Answer 1

To calculate the total cost of the item including sales tax, we first find the amount of sales tax and then add that to the original price.

1. Calculate the sales tax:
\[
\text{Sales tax} = \text{Price} \times \text{Tax rate} = 13.93 \times 0.05 = 0.6965
\]

2. Round the sales tax to the nearest cent:
\[
0.6965 \approx 0.70
\]

3. Add the sales tax to the original price:
\[
\text{Total cost} = \text{Price} + \text{Sales tax} = 13.93 + 0.70 = 14.63
\]

Thus, the total cost of the item including sales tax is **$14.63**.

So the correct answer is **A. $14.63**.