# Exercise 7.4 class 8 solution

#### Exercise 7.4 class 8 solution-Introduction

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#### Exercise 7.4 class 8 solution- What is sales tax ?

Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is typically calculated as a percentage of the purchase price and is collected by the seller at the time of the transaction. The seller then remits the collected tax to the appropriate government authority, which may be local, state, or national, depending on the jurisdiction.

let’s consider a simple example of sales tax:

Example: Sales Tax on a Retail Purchase

Suppose you’re a consumer shopping for a new laptop in the state of California, where the sales tax rate is 7.25%. You find a laptop with a price tag of \$1,000. Here’s how sales tax would be applied in this scenario:

1. Determine the Taxable Amount: The first step is to determine the taxable amount. In this case, the laptop costs \$1,000.
2. Calculate the Sales Tax: To calculate the sales tax, you multiply the taxable amount by the sales tax rate. In California, the sales tax rate is 7.25%. So:Sales Tax = \$1,000 (Taxable Amount) * 0.0725 (7.25% as a decimal) = \$72.50
3. Total Cost: The total cost of the laptop, including sales tax, is the sum of the taxable amount and the sales tax:Total Cost = \$1,000 (Laptop Price) + \$72.50 (Sales Tax) = \$1,072.50

So, in this example, you would pay a total of \$1,072.50 for the laptop, with \$72.50 of that amount going to the state of California as sales tax.

#### Exercise 7.4 class 8 solution-Examples of the exercise.

Example 7.4.1 Find the buying price off each of the following ,when 5% sales tax is added to the purchase of

(i) a towel at rs 120

(ii) pair of roller skates at rs 450

solve : (i) Price of towel = Rs120

sales tax = 5%

(ii) Price of skates = Rs 450

sales tax = 5%

#### Exercise 7.4 class 8 solution- exercise preview

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#### Exercise 7.4 class 8 solution- solution pdf

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