To find the total cost of an item with a given price and sales tax, you can use the following formula:
\[ \text{Total Cost} = \text{Item Price} + (\text{Item Price} \times \text{Sales Tax Rate}) \]
In this case:
- Item Price = $69.25
- Sales Tax Rate = 5.5% = 0.055
Now we can calculate the sales tax amount:
\[ \text{Sales Tax} = 69.25 \times 0.055 = 3.80375 \]
Next, we will add the sales tax to the original price to get the total cost:
\[ \text{Total Cost} = 69.25 + 3.80375 = 73.05375 \]
Rounding to two decimal places, the total cost is:
\[ \text{Total Cost} \approx 73.06 \]
So, the total cost of the item is $73.06.