Question

Horatio is purchasing a computer cable for \(15.49. If the sales tax rate in his state is 5.25%, what is the total cost of the purchase?

A. \)16.42
B. \(16.30

C. \)15.73

D. $15.62

Short answer

The total cost of purchase is option B. $16.30.

Step-by-step solution

Step 1. State the concept of sales tax.

A sales tax is ataxpaid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at thepoint of purchase.

$\text{Sales\hspace{0.17em}\hspace{0.17em}tax=sales\hspace{0.17em}\hspace{0.17em}tax\hspace{0.17em}\hspace{0.17em}rate\hspace{0.17em}\hspace{0.17em}×\hspace{0.17em}\hspace{0.17em}cost\hspace{0.17em}\hspace{0.17em}priceofcomputercable}$

Step 2. Calculate the sales tax.

The sales tax rate is $5.25\%=\frac{5.25}{100}$.

$$\begin{gathered} \text{Sales\hspace{0.17em}\hspace{0.17em}tax}=\frac{5.25}{100}\times 15.49 \\ =\$0.813 \end{gathered}$$

Step 3. Calculate the total cost of computer cable.

The total cost of purchase is calculated as follows.

$$\begin{gathered} \text{Total\hspace{0.17em}\hspace{0.17em}cost\hspace{0.17em}\hspace{0.17em}of\hspace{0.17em}\hspace{0.17em}computer\hspace{0.17em}\hspace{0.17em}cable=Cost\hspace{0.17em}\hspace{0.17em}of\hspace{0.17em}\hspace{0.17em}computer\hspace{0.17em}\hspace{0.17em}cable+sales\hspace{0.17em}\hspace{0.17em}tax} \\ \text{=15.49+0.813} \\ \text{=16.303} \\ \approx \$\text{16.30} \end{gathered}$$

Therefore the total cost of the purchase is $16.30.

Hence option B is correct.