This year, state a raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. because of the increase, the volume of taxable sales declined from $890 million to $759 million. in contrast, state z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. the volume of services subject to tax was $145 million. compute the additional revenue raised by state a. compute the additional revenue raised by state z.

(a) $1.04 million

(b) $7.25 million

Explanation:

Additional revenue raised by State A :

Initial revenue = $(5% x 890) million

                         = $ 44.5 million

Revenue from increased tax rate = $(6% x 759) million

                                                       = $45.54 million

Additional Revenue raised by State A = $ (45.54 - 44.5)million

                                                               = $1.04 million

Additional revenue raised by State Z :

Revenue from increased tax base = $(5% x 145) million

                                                         = $7.25 million

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?