Q:

Chris took a vacation trip to maine, where sales tax on taxable items is 5%. in maine, prepared food and lodging are taxed an additional 2%, for a total of 7% tax, while auto rentals are taxed an additional 5%, for a total of 10% tax.chris bought $70 worth of souvenirs, taxable at the general rate. he also spent $580 on prepared food and lodging and $620 for a rental car, all before tax. how much did he spend in total after tax was included? a.$1333.50  b.$1316.10  c.$1270.00  d.$1376.10

Accepted Solution

A:
So, it's just an annoying problem. Keep the tax rates in mind for each thing.
$70 of souvenirs mean the tax is 5% since it is not prepared food, lodging, or auto rentals.
$580 on prepared food means that has 7% tax because it is special.
$620 on the car has a 10% tax, as stated in the problem.
So do 70(1.05)+580(1.07)+620(1.1) to get $1376.1.0