Finding the sales tax percentage from a price
About this video
A bubble tea costs $6.50 before tax and $6.76 after tax. The video finds the tax amount ($0.26) by subtracting, then divides by the original price: 0.26 ÷ 6.50 = 0.04 = 4%.
You'll be able to
- find the amount of sales tax by subtracting the original price from the total.
- find the tax rate by dividing the tax by the original price.
- convert a decimal like 0.04 to a percent.
Key words
- Sales tax
- Extra money added to a price when you buy something, usually a percent of the price.
- Original price
- The price before tax or discounts are applied.
Transcript
- [Instructor] We're told that a large bubble tea costs $6.50 before sales tax. The total cost after tax is $6.76. What percentage of the original price was the sales tax? Pause the video and try to calculate that. Okay, so we know the absolute amount of sales tax there is.
It's the difference between $6.76 and $6.50. So if we just take $6.76 and we were to subtract from that $6.50, we are going to get 26 cents. So that's the absolute amount of the sales tax, but we wanna figure out what percentage of the original price was the sales tax.
So to calculate that, we would take the sales tax, which is a quarter, and we would... Oh, actually, I wanna be careful. This 26 cents, I wrote 25. 26 cents. So we wanna take the sales tax, that 26 cents, and we want to divide it by the original price to figure out what percentage of the original price it is.
So we're gonna divide that by $6.50. And actually I'll get a calculator out for that. We could do it with some long division, but this will be a little bit faster. So .26 divided by 6.5 is equal to 0.04. So this is equal to 0.04, which is equal to 4%. And we're done.
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