A jacket costs $60. The sales tax is 5%. What is the total cost? Step by Step

Step by step

The question

Question: A jacket costs $60.

The sales tax is 5%.

What is the total cost?

There are four choices.

First we solve it, the normal way.

Then we pick.

1 Find the tax

Percent means out of 100.

So 5% is 5 divided by 100: 0.05.

The point moves 2 places to the left.

5% = 5 ÷ 100 = 0.05

The tax is 5% of $60.

"Of" means times: 0.05 times $60.

To multiply decimals: first 5 times 60, as whole numbers.

That is 300.

Then count the decimal places: 2, the digits after the point in 0.05.

So it is 3.00.

5 × 60 = 300

2 decimal places: 3.00

So the tax is $3.

tax = 0.05 × $60 = $3

Careful!

5% is not $5.

It is 5% of the price.

Careful: not $60 + $5 = $65 ✗

2 Add it on

The tax is added to the price.

$60 plus $3 is $63.

total = $60 + $3 = $63

So the total is $63.

3 Check

Let's check another way: we pay 100% plus 5%: 105% of the price.

1.05 times $60 is $63.

The same.

So the answer is right!

100% + 5% = 105%: 1.05 × $60 = $63

4 Pick the choice

Our answer is total: $63.

That is choice C.

C) $63

5 Why not the others

A is $3.

Wrong: that is only the tax.

A) $3 ✗ that is only the tax

B is $57.

Wrong: took the tax away instead of adding it.

B) $57 ✗ took the tax away instead of adding it

D is $65.

Wrong: added $5: 5% of $60 is $3, not $5.

That is the Careful mistake from before.

D) $65 ✗ added $5: 5% of $60 is $3, not $5

Let's look back.

First: find the tax.

Then: add it on.

Then: check.

Then: pick the choice.

Last: why not the others.

Answer