How do you calculate the tax on a $50 purchase at a 10% tax rate?

How do you calculate the tax on a $50 purchase at a 10% tax rate?

• A. $5
• B. $10
• C. $2.50
• D. $7.50

Answer: (A)

To calculate the tax on a purchase, you multiply the total purchase amount by the tax rate. In this case, the purchase amount is $50, and the tax rate is 10% (or 0.10 when expressed as a decimal). The calculation is as follows: Tax = Purchase Amount × Tax Rate Tax = $50 × 0.10 Tax = $5 This means that at a 10% tax rate, the tax on a $50 purchase is indeed $5. This simple multiplication provides a straightforward way to determine how much tax is owed on a given purchase amount.

To calculate the tax on a purchase, you multiply the total purchase amount by the tax rate. In this case, the purchase amount is $50, and the tax rate is 10% (or 0.10 when expressed as a decimal).

The calculation is as follows:

Tax = Purchase Amount × Tax Rate

Tax = $50 × 0.10

Tax = $5

This means that at a 10% tax rate, the tax on a $50 purchase is indeed $5. This simple multiplication provides a straightforward way to determine how much tax is owed on a given purchase amount.