Sales Tax in a Bill

We will discuss here how to calculate the sales tax in a bill.

1. Jack bought the following electrical items from a shop.

Items:

Fans

Lamps

Switches

Tubes

Electric wire

Quantity:

4

2 dozens

5 dozens

6

230 metres

Rate:

$ 675 each

$ 110/Dozen

$ 41/Dozen

$ 135 each

$ 2.50/ metre

If the sales tax is charged at the rate of 7% on all these items, find the total amount paid by Jack.

Solution:

Cost of 4 fans = $ (675 x 4) = $ 2,700

Cost of 2 dozen lamps = $ (110 x 2) = $ 220

Cost of 5 dozen switches = $(41 x 5) = $ 205

Cost of 6 tubes = $(135 x 6) = $ 810

Cost of 230 meter of wire = $ (2.50 x 230) = $ 575

Therefore, the total cost of all items = $ 2,700 + $ 220 + $ 205 + $ 810 + $ 575 = $ 4,510

Therefore, sales tax at the rate of 7% = $ (4510 x \(\frac{7}{100}\)) = $ 315.70

Therefore, total amount paid by Jack = $ 4,510 + $ 315.70 = $ 4,825.70

 

2. Richard bought the following goods from a departmental store.

Commodity:

Cosmetics

Medicines

Bakery products

Stationery

Marked price:

$ 450

$ 250

$ 103

$ 185

Rate of sales tax:

10%

8%

Nil

5%

Find the total amount Richard had to pay for the commodities. How much did she pays as sales tax.

Solution:

For cosmetics; here, the marked price P = $450, the rate of sales tax = 10%, i.e. r = 10

Therefore, S = P(1 + \(\frac{r}{100}\))

S = $ 450 × (1 + \(\frac{10}{100}\))

       = $ 450 × (\(\frac{11}{10}\))

       = $ 495

For medicines; here, the marked price P = $250, the rate of sales tax = 8%, i.e. r = 8

Therefore, S = P(1 + \(\frac{r}{100}\))

S = $ 250 × (1 + \(\frac{8}{100}\))

       = $ 250 × (\(\frac{27}{25}\))

       = $ 270

For bakery products; here S = P = $ 103, as there is no sales tax

For stationery; here, the marked price P = $185, the rate of sales tax = 5%, i.e. r = 5

Therefore, S = P(1 + \(\frac{r}{100}\))

S = $ 185 × (1 + \(\frac{5}{100}\))

       = $ 185 × (\(\frac{21}{10}\))

       = $ 194.25

Therefore, the total amount paid = $495 + $270 + $103 + $ 194.25 = $ 1062.25

The total amount of sales tax paid = ($495 - $450) + ($270 - $250) + 0 + ($ 194.25 - $ 185)

                                               = $45 + $20 + 0 + $9.25

                                               = $74.25

● Sales Tax and Value Added Tax



10th Grade Math

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