Select The Correct Answer.Heather Paid $ 2 , 022.30 \$2,022.30 $2 , 022.30 For A Computer. If The Price Paid Includes A 7 % 7\% 7% Sales Tax, Which Of The Following Equations Can Be Used To Determine The Price Of The Computer After Tax? (Let X X X

When making a purchase, it's essential to understand the concept of sales tax and how it affects the final price of an item. Sales tax is a type of consumption tax levied by governments on the sale of goods and services. In this article, we will explore how to determine the price of a computer after tax, given the total amount paid, including a sales tax.

Calculating the Price of a Computer After Tax

Heather paid $\$2,022.30$ for a computer, which includes a $7\%$ sales tax. To determine the price of the computer after tax, we need to find the original price of the computer before the sales tax was added. Let's assume the original price of the computer is $x$. The sales tax is $7\%$ of the original price, which can be represented as $0.07x$.

Equation to Determine the Price of the Computer After Tax

The total amount paid, including the sales tax, is $\$2,022.30$. This can be represented by the equation:

$$x + 0.07x = 2022.30$$

Simplifying the equation, we get:

$$1.07x = 2022.30$$

To find the value of $x$, we can divide both sides of the equation by $1.07$:

$$x = \frac{2022.30}{1.07}$$

Solving for x

Now, let's solve for $x$:

$$x = \frac{2022.30}{1.07}$$

$$x = 1885.00$$

Therefore, the original price of the computer before the sales tax was added is $\$1885.00$.

Conclusion

In this article, we have learned how to determine the price of a computer after tax, given the total amount paid, including a sales tax. We have used the equation $x + 0.07x = 2022.30$ to find the original price of the computer. By simplifying the equation and solving for $x$, we have found that the original price of the computer is $\$1885.00$.

Real-World Applications

Understanding sales tax and how it affects prices is essential in real-world applications. For example, when shopping online, it's crucial to factor in sales tax to avoid any surprises at checkout. Additionally, businesses need to consider sales tax when pricing their products to ensure they are competitive in the market.

Common Mistakes to Avoid

When calculating sales tax, it's essential to avoid common mistakes. One mistake is to assume that the sales tax is a fixed amount, rather than a percentage of the original price. Another mistake is to forget to include the sales tax in the total amount paid. By understanding the concept of sales tax and how it affects prices, we can avoid these common mistakes and make informed purchasing decisions.

Final Thoughts

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In our previous article, we explored how to determine the price of a computer after tax, given the total amount paid, including a sales tax. In this article, we will answer some frequently asked questions (FAQs) about sales tax and pricing.

Q: What is sales tax, and how does it affect prices?

A: Sales tax is a type of consumption tax levied by governments on the sale of goods and services. It is a percentage of the original price of an item, and it is added to the total amount paid. For example, if an item costs $\$100$ and the sales tax is $7\%$, the total amount paid would be $\$107$.

Q: How do I calculate the sales tax on an item?

A: To calculate the sales tax on an item, you need to multiply the original price of the item by the sales tax rate. For example, if an item costs $\$100$ and the sales tax rate is $7\%$, the sales tax would be:

$$\text{Sales Tax} = \text{Original Price} \times \text{Sales Tax Rate}$$

$$\text{Sales Tax} = \$100 \times 0.07$$

$$\text{Sales Tax} = \$7$$

Q: How do I calculate the total amount paid, including sales tax?

A: To calculate the total amount paid, including sales tax, you need to add the sales tax to the original price of the item. For example, if an item costs $\$100$ and the sales tax is $7\%$, the total amount paid would be:

$$\text{Total Amount Paid} = \text{Original Price} + \text{Sales Tax}$$

$$\text{Total Amount Paid} = \$100 + \$7$$

$$\text{Total Amount Paid} = \$107$$

Q: What is the difference between sales tax and value-added tax (VAT)?

A: Sales tax and value-added tax (VAT) are both types of consumption taxes, but they are calculated differently. Sales tax is a percentage of the original price of an item, while VAT is a percentage of the value added to an item at each stage of production and distribution.

Q: How do I calculate the VAT on an item?

A: To calculate the VAT on an item, you need to multiply the value added to the item by the VAT rate. For example, if an item costs $\$100$ and the VAT rate is $10\%$, the VAT would be:

$$\text{VAT} = \text{Value Added} \times \text{VAT Rate}$$

$$\text{VAT} = \$100 \times 0.10$$

$$\text{VAT} = \$10$$

Q: How do I calculate the total amount paid, including VAT?

A: To calculate the total amount paid, including VAT, you need to add the VAT to the original price of the item. For example, if an item costs $\$100$ and the VAT is $10\%$, the total amount paid would be:

$$\text{Total Amount Paid} = \text{Original Price} + \text{VAT}$$

$$\text{Total Amount Paid} = \$100 + \$10$$

$$\text{Total Amount Paid} = \$110$$

Q: What is the difference between sales tax and excise tax?

A: Sales tax and excise tax are both types of consumption taxes, but they are levied on different types of goods and services. Sales tax is typically levied on general merchandise, while excise tax is levied on specific goods and services, such as gasoline, tobacco, and liquor.

Q: How do I calculate the excise tax on an item?

A: To calculate the excise tax on an item, you need to multiply the quantity of the item by the excise tax rate. For example, if you buy 10 gallons of gasoline and the excise tax rate is $0.18$ per gallon, the excise tax would be:

$$\text{Excise Tax} = \text{Quantity} \times \text{Excise Tax Rate}$$

$$\text{Excise Tax} = 10 \times \$0.18$$

$$\text{Excise Tax} = \$1.80$$

Conclusion

In this article, we have answered some frequently asked questions (FAQs) about sales tax and pricing. We have explained how to calculate sales tax, VAT, and excise tax, and how to calculate the total amount paid, including these taxes. By understanding these concepts, you can make informed purchasing decisions and ensure that you are getting the best value for your money.