Question

The city of Savannah recently increased their sales tax from 7% to 8%. How much more tax will you pay on a $20 purchase? A) $0.10 B) $0.20 C) $0.75 D) $0.80

Answer 1

purchase price= 20

initial tax rate = 7%

tax = purchase price × tax rate = 20×7% = 1.4

Altered tax rate = 8%

tax = purchase price × tax rate = 20×8% = 1.6

change = 1.6 - 1.4 = 0.2

Option B is the answer