BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peter bought a new car for $15, 000, the total purchase price is $15, 750, what’s the tax rate?
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4.5%
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1%
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4.76%
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5%
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Explanation:
Detailed explanation-1: -Divide taxes paid by net profit to calculate the effective tax rate percentage. In the example, $35, 000 divided by $100, 000 equals an effective tax rate of 0.35 or 35 percent.
Detailed explanation-2: -Total Price Formula To calculate the total price, multiply the number of items purchased by the average price per item.
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