Data:
Cost of the bike: $89.00
Salex tax California: 7.5%
Sales tax in Ohio: 7%
1. As the bike cost without tax $89.00 to find how much will she pay in taxes in California (C) you find the 7.5% of $89.00:
[tex]C=89.00\cdot\frac{7.5}{100}=6.675[/tex]In California she pays in tax $6.6752. As the bike has the same cost $89.00 to find how much she will save purchasing the bike in Ohio you:
- calculate the 7% of $89.00
[tex]89.00\cdot\frac{7}{100}=6.23[/tex]In Ohio she pays in tax $6.23- Find the difference between the tax she pays in California and the tx she pay in Ohio:
[tex]6.675-6.23=0.445[/tex]If she purchase the bike in Ohio she will save $0.445