For every pack of cigarettes sold, a state tax of 12 cents and a local tax of 3 cents are added to the price of the pack. If a pack of cigarettes sells for $1.35 including taxes, approximately what percent of the pre-tax price is the sum of the state and local taxes?
12.5%
12.0%
11.1%
9.3%
9.0%
My ans is B. However, princeton says it is A.....
Can someone pls explain to me
Princeton review - online test question
This topic has expert replies
This looks a bit strange, but I think it is straightforward. Just find the percentage of the taxes. We have here 1.35 total price, and tax of 0.12 + 0.03 = 0.15. Therefore;
1.35 - 0.15 = 1.20 Pre-tax price
Then, ==> 0.15 / 1.20 = .125 = 12.5%
Hope this helps!
1.35 - 0.15 = 1.20 Pre-tax price
Then, ==> 0.15 / 1.20 = .125 = 12.5%
Hope this helps!