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1. Sales slip for Ron Wilson. Electric drill for $49.50. Drill bits for $18.50. Sales tax rate of 5%. What is the total purchase price?

1. Sales slip for Ron Wilson. Electric drill for $49.50. Drill bits for $18.50. Sales tax rate of 5%. What is the total purchase price?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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**Sales Transaction Example** 1. **Sales slip for Ron Wilson.** - **Electric drill: $49.50** - **Drill bits: $18.50** - **Sales tax rate: 5%** **Question:** What is the total purchase price? This example illustrates how to calculate the total cost of a purchase by adding the initial costs and applying a sales tax. First, sum the prices of the electric drill and drill bits. Then, calculate the sales tax by applying the tax rate to the subtotal. Finally, add the tax to the subtotal to find the total purchase price.
Transcribed Image Text:**Sales Transaction Example** 1. **Sales slip for Ron Wilson.** - **Electric drill: $49.50** - **Drill bits: $18.50** - **Sales tax rate: 5%** **Question:** What is the total purchase price? This example illustrates how to calculate the total cost of a purchase by adding the initial costs and applying a sales tax. First, sum the prices of the electric drill and drill bits. Then, calculate the sales tax by applying the tax rate to the subtotal. Finally, add the tax to the subtotal to find the total purchase price.
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