Sales tax, we all have to pay it. But how
do you calculate how much sales tax is? Hi, I’m jimmy Chang. I’ve been teaching college
mathematics for almost a decade. And we’re here to calculate sales tax. Now the one thing
that you definitely need of course, is. Is you need to find out from your county or state.
How much the sales tax rate is? It can be 7%, 8%, eight and a quarter. Five and half,
it all depends on what the tax happens to be. But you definitely need that number. Because
you’ll need it to figure out how much tax you’ll be paying on certain items. And it
will help you find out what the total is. And it will give you more insight as to why
the final totals are what they are. Now here’s a brief example, now. Suppose you have a sales
tax of 7%. First thing that you definitely need to do is take what ever percentage that
you are provided. And turn it into a decimal. That way, it will help you figure out how
much tax you’re actually paying on a particular item. Now because it is 7%. You take that
decimal and shift it to the left, two places. So 7% is actually another way of saying 0.07.
Now here’s an example of how to calculate how much sales tax you’re paying. The much
sought after Nintendo Wii costs two hundred and forty nine dollars and ninety nine cents,
retail. To figure how much tax you’ll be paying under the 7% sales tax. You simply take how
much the Wii is worth. 249.99 and multiply by 0.07. A calculator is very, very handy
here. But because we are talking about dollars and cents. You want to round to 2 decimal
places. So when you multiply those two numbers. You will get a grand total of a tax, a sales
tax of 17 dollars and 50 cents. But what if you wanted to figure out how much you would
be paying ahead of time. With tax as well as the total amount, with tax included. Well,
you’re still doing the same thing that we just did. But you always want to be sure that
instead of, in this case 0.07, put a 1as their front number. In other words, 1.07. Whenever
you put a 1 in front of the decimal. It will always give you the total. So if you want
to find out the total cost of the Wii including tax. You take, 249.99 and multiply by 1.07.
Notice that 1. That’s going to give you the total along with the tax. Now when you multiply,
you’re going to get a grand total of 267 dollars and 49 cents. And that’s going to give you
the grand total, tax included. So, my name is Jimmy Chang. And that’s an example as to
how you calculate sales tax with and without totals.