Ethan wants to earn enough money to purchase new Nikes. The pair he likes is $79.99. His sales tax is 7.25%. How much money does he need to earn? Round to nearest hundredth.

Answer 1

To find out how much money Ethan needs to earn to purchase the Nikes, we first need to calculate the total cost, including sales tax.

1. Calculate Sales Tax: The sales tax can be calculated by multiplying the price of the Nikes by the sales tax rate.

   \[ \text{Sales Tax} = \text{Price} \times \text{Sales Tax Rate} \] \[ \text{Sales Tax} = 79.99 \times 0.0725 = 5.794775 \]

2. Round the Sales Tax: Rounding to the nearest hundredth, the sales tax is:

   \[ \text{Sales Tax} \approx 5.79 \]

3. Calculate Total Cost: Now, add the sales tax to the original price to find the total cost.

   \[ \text{Total Cost} = \text{Price} + \text{Sales Tax} \] \[ \text{Total Cost} = 79.99 + 5.79 = 85.78 \]

Thus, Ethan needs to earn $85.78 to purchase the new Nikes.