Name:_________________________________________ Date:______________________

Personal Finance 5.1 Classified Ads

Title:_____________________________________________________________________

Essential Question:

Definition:
Study Questions:
●Sales Tax- This money goes to the ________, not the _________ of the
car. Be sure you consider the sales tax expense on a car you are planning
to purchase. It can be _____________ of dollars on a new car.

EXAMPLE 1:
Kerry purchased a used car for $7,400 and had to pay 8½ % sales tax. How
much tax did she pay?

Step 1: Convert the sales tax amount

to a decimal.
Move the decimal point over two
times

Step 2: multiply the decimal percent

and the price of the car

Kerry paid ______________ in sales tax

PRACTICE: (Do on your own, we will review together in a few minutes)

Emily bought a car for $23,000 and had to pay a sales tax of 9.1% how
much tax did she pay?

Personal Finance 5.1

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Study Questions:

EXAMPLE 2:

David found a car he would like to buy that cost $16,480. He must pay 7¼
% sales tax. How much will he have to pay for the car after taxes?

Step 1: Convert the sales tax amount

to a decimal.
Move the decimal point over two
times

Step 2: multiply the decimal percent

and the price of the car

Step 3: Add the tax price to the

original price of the car

David will have to pay ____________ for his car.

PRACTICE: (Do on your own, we will review together in a few minutes)

Sydney is going to buy a used car for $8,500 but must pay a sales tax of 7.6%.
How much will she need to pay to buy the car after tax?

Personal Finance 5.1

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