What equation is used to calculate the total amount?total amount = purchase price sales tax ratetotal amount = (1 + sales tax rate) + purchase pricetotal amount = sales tax amount + purchase pricetotal amount =
Question
What equation is used to calculate the total amount?total amount = purchase price sales tax ratetotal amount = (1 + sales tax rate) + purchase pricetotal amount = sales tax amount + purchase pricetotal amount =
Solution
The correct equation to calculate the total amount including sales tax is:
total amount = purchase price + (purchase price * sales tax rate)
Here's the step by step process:
- Calculate the amount of sales tax: sales tax amount = purchase price * sales tax rate
- Add the sales tax amount to the original purchase price: total amount = purchase price + sales tax amount
This equation assumes that the sales tax rate is given as a decimal (for example, a 5% sales tax rate would be expressed as 0.05).
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