A beverage store charges a base price of x dollars for one keg of root beer. A sales tax of a certain percentage is applied to the base price, and an untaxed deposit for the keg is added. If the total amount, in dollars, paid at the time of purchase for one keg is given by the expression 1.07x + 17, then what is the sales tax, expressed as a percentage of the base price?
A. 0.07%
B. 1.07%
C. 7%
D. 17%
Answer:C
A beverage store charges a base price of x dollars for one keg of root beer. A sales tax of a certain percentage is applied to the base price, and an untaxed deposit for the keg is added. If the total amount, in dollars, paid at the time of purchase for one keg is given by the expression 1.07x + 17, then what is the sales tax, expressed as a percentage of the base price?
A. 0.07% B. 1.07% C. 7% D. 17%
Explanation: C You can plug in to make sense of this equation. Say that x = $100. The amount of the keg would then be $107 + $17. The $17 must be the untaxed deposit since it is a flat fee rather than percentage based. Therefore, the tax is $7, which is 7% of the original $100 base price. The answer is (C).