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Problem-Solving and Data AnalysisEasyPercent increase applied to a price (sales tax)

Problem-Solving and Data Analysis practice question

A shirt has a price of $24.00. A sales tax of 8% of the price is added to the price. What is the total cost, in dollars, of the shirt including sales tax?

  1. A. $1.92
  2. B. $22.08
  3. C. $25.92Correct
  4. D. $32.00

Answer: C. $25.92

The tax is 8% of $24.00, which is 0.08 × 24 = $1.92, so the total cost is 24.00 + 1.92 = $25.92 (equivalently, 1.08 × 24 = 25.92). Choice A is the amount of tax only, not the total cost. Choice B subtracts the tax instead of adding it (24 − 1.92). Choice D adds $8 instead of 8% of the price.

Why the other answers are wrong

A. $1.92
$1.92 is the tax alone (0.08 × 24); the question asks for the total, so add it to the $24.00 price.
B. $22.08
You subtracted the $1.92 tax instead of adding it — tax increases the cost, so 24.00 + 1.92.
D. $32.00
You added $8 rather than 8% of the price; 8% of $24.00 is $1.92, not $8.

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