Question 19

Trevani paid $1.00 in tax on the book.

To find the amount of tax Trevani paid, we can first determine the pre-tax price of the book. The total price of $13.50 includes 8% sales tax, indicating that the tax portion can be calculated from the total amount.

A) $0.96

This option is incorrect because if Trevani had paid $0.96 in tax, the pre-tax amount would be calculated as follows: $13.50 - $0.96 = $12.54. The tax rate of 8% applied to $12.54 would be approximately $1.00, thus indicating that $0.96 is not the correct tax amount.

B) $1.00

This option is correct as it aligns with the calculation of tax. By taking the total amount paid of $13.50 and recognizing that it includes an 8% tax, we can set up the equation: Total = Pre-Tax Price + Tax. If we let the pre-tax price be P, then $13.50 = P + 0.08P, which simplifies to $13.50 = 1.08P. Solving for P gives us approximately $12.50, and the tax calculated from this amount is indeed $1.00.

C) $1.04

This option is incorrect because if the tax were $1.04, the pre-tax price would be $13.50 - $1.04 = $12.46. Calculating 8% of $12.46 yields approximately $0.998, which rounds to $1.00, not $1.04. Hence, this option does not reflect the correct calculation based on the given total.

D) $1.08

This option is also incorrect. If Trevani had paid $1.08 in tax, the pre-tax price would be $13.50 - $1.08 = $12.42. Calculating 8% of $12.42 results in approximately $0.994, which rounds to $1.00. Therefore, $1.08 does not accurately represent the tax amount based on the total given.

Conclusion

Trevani's tax payment of $1.00 is confirmed by the correct calculation of the pre-tax price and the 8% tax rate applied to it. All other options fail to reflect the accurate tax amount derived from the total paid, reinforcing that option B is definitively correct.