Compute the sales tax on the following transactions. An article retails for $37.50. The city sales tax is 6%, and the federal excise tax is 8%. How much does the article cost altogether?
Accepted Solution
A:
First you must find the rate of both taxes. Since its 8% and 6%, you must add them both together, then divide them by 100.
14/100 = .14
Then for both rates you must add 1 because it is a tax increase.