To find out the sales tax rate we must do a division between the sales tax and the cost before tax, then:
[tex]\text{sales tax rate }=\frac{\text{sales tax} }{\text{cost before tax} }[/tex]But we want to find it in percentage, then we must multiply it by 100 at the end!
[tex]\text{sales tax rate }\%=\frac{\text{sales tax} }{\text{cost before tax}}\cdot100[/tex]Now we have the formula, we can just apply it and do the calculus!
[tex]\begin{gathered} \text{sales tax rate }\%=\frac{\$25.90}{\$370}\cdot100 \\ \\ \text{sales tax rate }\%=0.07\cdot100 \\ \\ \text{sales tax rate }\%=7\% \end{gathered}[/tex]Hence, the sales tax rate is 7%
