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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 =

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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:

  1. Calculate the amount of sales tax: sales tax amount = purchase price * sales tax rate
  2. 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).

This problem has been solved

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