2
QuizMultiple Choice

Taxes — Test

Question 2 • Financial Math

A smartphone is priced at $⁢800 If purchased in City A with a sales tax rate of 8% and in City B with a sales tax rate of 5% , what is the difference in the final cost between the two cities?

Answer
A
64 dollars
B
40 dollars
C
24 dollars
D
104 dollars

Explanation

City A’s tax is 8% of $800, or $64, so the final cost is $864. City B’s tax is 5% of $800, or $40, so the final cost is $840. The difference is $864 − $840 = $24, so the correct choice is 24 dollars.

AI-written and checked against the verified answer.

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