AT&T Information Practice Test

A $75 purchase has an 8% sales tax. What is the total price?

$73 $81 $75 $79

Correct Answer:

$81

Explanation:

The key idea is to apply the tax to the purchase price and then add it to the price. With an 8% tax on $75, the tax amount is 0.08 × 75 = 6. Add that to the original price: 75 + 6 = 81. Equivalently, multiply by 1.08: 75 × 1.08 = 81. So the total price is $81. The other numbers come from not adding the tax or misapplying the percentage, but the correct approach is to increase the price by the tax amount.

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