A pair of headphones costs $48, and the sales tax rate is 7%. What is the total cost including tax?
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Answer: D
Correct answer: $51.36. Multiply the price by 1 plus the tax rate:
- A: This is only the tax; it must be added to the $48 price.
- B: This subtracts the tax as if it were a discount.
- C: This adds $7 instead of 7% of the price.
- D (correct): Tax is 0.07 × 48 = $3.36, so the total is 48 + 3.36 = $51.36 (or 1.07 × 48).