Big Ideas Math Algebra 1, 2015
BI
Big Ideas Math Algebra 1, 2015 View details
Chapter Test
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Exercise 18 Page 97

Practice makes perfect
a We are told that the tax applies only to the difference between the price of the item and $175. We can see from the receipt that the price of the suit is $295. This difference is the taxable amount.
295 - 175 = 120 We will now find what percent of this amount is 7.50. This can be done using a percent proportion.
Part/Whole=Percent/100
7.50/120=x/100
â–Ľ
Solve for x
0.0625=x/100
6.25=x
x=6.25
Therefore, the tax rate is 6.25 %.
b To find the possible prices p of coats that the shopper can afford we need to consider the sales tax. Since the shopper can spend at most $430, we can write an inequality for this situation.
p+Sales Tax≤$430 We are told that the sales tax applies only to the difference between the price p of the item and 175. We found in Part A that the tax rate is 6.25 %, which can be rewritten as the decimal value 0.0625. Sales Tax = 0.0625(p-175) We can use this to rewrite our inequality. p+0.0625(p-175)≤430 Let's solve this inequality for p.
p+0.0625(p-175)≤430
â–Ľ
Solve for p
p+0.0625p-0.0625(175) ≤ 430
p+0.0625p-10.9375≤430
1.0625p-10.9375≤430
1.0625p≤440.9375
p≤440.9375/1.0625
p≤415
This means that when taxes are included the shopper can afford any winter coats that cost less than or equal to $415.
c We want to find for which values of p the flat 5 % tax is cheaper than the 6.25 % tax on purchases over $175.
0.05p < 0.0625(p-175) Let's solve this inequality for p.
0.05p<0.0625(p-175)
â–Ľ
Solve for p
p<0.0625(p-175)/0.05
p<0.0625/0.05(p-175)
p<1.25(p-175)
p<1.25p-1.25(175)
p<1.25p-218.75
p-1.25p<-218.75
-0.25p<-218.75
p>-218.75/-0.25
p>218.75/0.25
p>875
Any item costing more than $875 will be cheaper if purchased in the state with a flat 5 % sales tax rate. Three example prices are $945, $1200, and $1500.