If Zöe orders a book from Store Y, how much tax will she pay?

Question

Comparison of Online Bookstores

Store X
Store Y
Cost of book
$17.00
$18.00
Tax rate
6%
8%
Shipping
10% of cost before tax
FREE
$1.44
$2.25
$12.25
$14.40

Answer 1

To calculate the total tax Zöe will pay if she orders a book from Store Y, we need to first identify the relevant information:

1. The cost of the book: $18.00
2. Tax rate: 8%
3. Shipping cost: $2.25 (which is not taxable)

Now we calculate the tax on the cost of the book:

\[ \text{Tax} = \text{Cost of Book} \times \text{Tax Rate} \] \[ \text{Tax} = 18.00 \times 0.08 = 1.44 \]

So, if Zöe orders a book from Store Y, she will pay $1.44 in tax.