Calculate Sales Tax on $1.25 Purchase - Effective Rate

[chocolatelover]

Hi everyone,

Homework Statement

A child is surprised that she must pay $1.40 for a toy marked $1.25 because of sales tax. What is the effective tax rate on this purchase?

Homework Equations

The Attempt at a Solution

I know that the difference between the two is .15. I could just guess and check, but is there a formula?

Thank you very much

 

[awvvu]

Try thinking about how tax is computed.

1.25 * r = 0.15

 

[chocolatelover]

Thank you very much

Regards