How to Calculate Sales Tax on an Electric Vehicle: GED Math Explained

Calculating Sales Tax

• 🎯 The problem involves finding the sales tax on an electric vehicle purchased for $35,000 with an 8% sales tax rate.
• 💡 To calculate sales tax, you need to find a percent of a number, specifically 8% of the purchase price.

Formula for Percent of a Number

• 🔑 The formula to use is: Part = Base × Rate.
• 📌 The 'Part' is the value you are trying to find (the sales tax amount).
• ⚡ The 'Base' is the number associated with the word 'of' (the purchase price, $35,000).
• 🧠 The 'Rate' is the percentage expressed as a decimal.

Applying the Formula

• 📊 To convert the percentage to a decimal, divide by 100: 8% ÷ 100 = 0.08.
• 🔬 Multiply the base by the rate: $35,000 × 0.08 = $2,800.
• ✅ Therefore, the sales tax Tim will have to pay on his electric vehicle is $2,800.