A fast-food restaurant must apply an 8.5% tax on every sale it makes. How much tax must it charge a customer who purchases a total of $18.50 in food?

$1.57

Step-by-Step Explanation:

Study.com says: “the formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax,” (study.com, How to Calculate Sales Tax).

So, to find the amount of money they are charging for taxes, we need to use the formula: $18.50 x 8.5%. The selling price is the total sum of the purchase, and the sales tax rate is the percentage number that is apply to every sale as taxes.

Here’s how we solve:

1. To multiply, we first need to change our percentage into a decimal by dividing it by 100. —> 8.5/100 = 0.085

2. Multiply the purchase times the sales tax rate, which is converted into a decimal. —> 18.50 x 0.085 = 1.5725

3. Because money only uses the tenths and the hundredths places, we round up. —> 1.5725 ~ 1.573 ~ 1.57

4. Our answer for the tax amount charged in money is $1.57

Hope this helps!

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