Personal Financial Literacy>Calculating Sales Tax and Income Tax(TEKS.Math.7.13.A)

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Texas 7th Grade Math › Personal Financial Literacy>Calculating Sales Tax and Income Tax(TEKS.Math.7.13.A)

Questions 1 - 5
1

Sarah buys items totaling 45.60 dollars with 8.25% sales tax. What is the total amount Sarah pays?

53.85 dollars

83.22 dollars

49.36 dollars

45.60 dollars

Explanation

Sales tax is applied to the purchase subtotal. Compute the tax: $45.60 \times 0.0825 = 3.762 \approx 3.76$ dollars. Then add it to the subtotal: $45.60 + 3.76 = 49.36$ dollars total.

2

Marcus earns 12.50 dollars per hour working 25 hours per week. His income tax rate is 15%. How much income tax does Marcus pay weekly?

46.88 dollars

31.25 dollars

39.06 dollars

265.62 dollars

Explanation

First find weekly earnings: $12.50 \times 25 = 312.50$ dollars. Income tax is a percent of earnings: $312.50 \times 0.15 = 46.875 \approx 46.88$ dollars. Do not subtract unless asked for take-home pay.

3

A video game costs 59.99 dollars. The sales tax rate is 7.75%. What is the sales tax amount?

64.64 dollars

0.46 dollars

59.99 dollars

4.65 dollars

Explanation

Sales tax is the purchase subtotal times the tax rate: $59.99 \times 0.0775 = 4.649225 \approx 4.65$ dollars. The question asks for the tax amount, not the total price.

4

Lena earns a monthly salary of 2,800 dollars. Her income tax rate is 12%. How much income tax is withheld each month?

3,136 dollars

336 dollars

2,464 dollars

224 dollars

Explanation

Income tax is calculated from gross pay: $2{,}800 \times 0.12 = 336$ dollars withheld. Do not add this to the salary; it is the amount taken out.

5

A store purchase totals 82.40 dollars before tax. The sales tax rate is 6.5%. What is the total amount the customer pays?

87.76 dollars

82.40 dollars

5.36 dollars

88.90 dollars

Explanation

First find the tax on the pre-tax total: $82.40 \times 0.065 = 5.356 \approx 5.36$ dollars. Then add the tax to the subtotal: $82.40 + 5.36 = 87.76$ dollars.