Kenny purchased the items shown in the table.
Item
circular saw
screws
tape measure
wood glue
Cost ($)
79.95
12.50
16.75
5.20
In the city he lives in, the sales tax rate is 6.5%. In another city, the sales tax rate is
5%. How much more is he spending if he purchases the items in the city he lives in?
Round to the nearest cent.

Respuesta :

To calculate how much more Kenny would spend if he purchases the items in the city he lives in compared to another city with a lower sales tax rate, we need to compute the total cost including sales tax for both scenarios.

First, let's calculate the total cost of the items without tax:

\[

\text{Total Cost (without tax)} = \$79.95 + \$12.50 + \$16.75 + \$5.20

\]

\[

\text{Total Cost (without tax)} = \$114.40

\]

Now, let's calculate the total cost including sales tax for both cities:

1. In the city he lives in (6.5% sales tax):

\[

\text{Total Cost (with 6.5% tax)} = \text{Total Cost (without tax)} \times (1 + 0.065)

\]

\[

\text{Total Cost (with 6.5% tax)} = \$114.40 \times 1.065

\]

\[

\text{Total Cost (with 6.5% tax)} \approx \$121.94

\]

2. In the other city (5% sales tax):

\[

\text{Total Cost (with 5% tax)} = \text{Total Cost (without tax)} \times (1 + 0.05)

\]

\[

\text{Total Cost (with 5% tax)} = \$114.40 \times 1.05

\]

\[

\text{Total Cost (with 5% tax)} \approx \$120.12

\]

Now, let's find out how much more he spends if he purchases the items in the city he lives in compared to the other city:

\[

\text{Difference in Cost} = \text{Total Cost (with 6.5% tax)} - \text{Total Cost (with 5% tax)}

\]

\[

\text{Difference in Cost} = \$121.94 - \$120.12

\]

\[

\text{Difference in Cost} \approx \$1.82

\]

So, Kenny would spend approximately $1.82 more if he purchases the items in the city he lives in compared to the other city.