Future Business Leaders of America (FBLA) Business Calculations Practice Test

When you buy a car for $1,500 and the sales tax is 7.5%, how much total did you pay?

1. $112.50

2. $1,612.50

3. $1,387.50

4. $1,500.00

The correct answer is: $1,612.50

To find the total amount paid when purchasing a car, including sales tax, you first need to calculate the sales tax amount based on the price of the car. Start by multiplying the cost of the car by the sales tax rate. In this case, the car costs $1,500 and the sales tax rate is 7.5%, which can be expressed as a decimal (0.075). Calculating the sales tax: Sales Tax = Car Price x Sales Tax Rate Sales Tax = $1,500 x 0.075 = $112.50 Next, you add the sales tax to the original price of the car to find the total cost: Total Cost = Car Price + Sales Tax Total Cost = $1,500 + $112.50 = $1,612.50 Thus, the final total amount paid for the car, including sales tax, is $1,612.50. This correctly reflects the total outlay required to purchase the vehicle, accounting for the additional cost imposed by the sales tax.