A certain car costs $6,595 before taxes are added. Taxes are $460 and license tags cost $55. What is the overall tax rate (to the nearest tenth)?

Answer 1

I think I am doing it right. Taxes are $460 so you set the problem up like:

$6,595(x)=$460
x=460/6595
=.0697 or 7% if you round.

$55 is the license tags cost, the question asked about the tax rate. To me tags are not a tax but rather a separate cost.

Answer 2

460 (taxes)/$6595(total cost before taxes)

= 0.0697
=7.0% tax on the car.