Spend Wisely

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Chapter 5

• Spend Wisely

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5.1 Sales Tax
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Sales Tax on Purchases

• Sales Tax - age of the price of an item OR age
  of total of all taxable items
• Sales Tax sales tax rate (price of item)
• Total Cost of Item price of item sales tax

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Example 1

• Software that turns your computer into a phone
  system sells for 89.99. You buy it in a state
  that charges a 4.5 sales tax. What is the sales
  tax paid? What is the total cost of the software?

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Nontaxable Items

• Some cities states dont tax some items (food,
  prescriptions, labor, services)
• Example 2
• A neighbor replaced her hot water heater. She
  paid 309.59 for the heater 56 to have it
  installed. A sales tax of 5.25 was added to the
  cost of the heater but not the installation.
  What was the sales tax what was the total cost
  of the heater to the neighbor?

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Wrap It Up