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Video: Solving Word Problem Involving Percentages

Rhodri Jones

Natalie wants to buy a new backpack which is advertised at $62. Sales tax of 4% must be added to this amount. How much sales tax will she pay?

01:41

Video Transcript

Natalie wants to buy a new backpack which is advertised at 62 dollars. Sales tax of four percent must be added to this amount. How much sales tax will she pay?

In order to solve this problem, we need to calculate four percent of 62 dollars, as the sales tax is four percent and the cost of the backpack before the sales tax was 62 dollars. Four percent can be written as a decimal as 0.04 or as a fraction as four over 100, or four hundredths. This means that we can multiply 62 dollars by either the decimal or the fraction.

In this case, we’ll multiply 0.04 by 62. Four multiplied by 62 is equal to 248. This means that 0.04 multiplied by 62 is 2.48, as we have moved the decimal point two places. This means that the sales tax is two dollars and 48 cents.

We could therefore calculate the total cost that Natalie will need to pay. We need to add two dollars 48 to 62 dollars. This would give a total cost of 64 dollars and 48 cents. Another way of calculating this total cost would be to multiply 62 by 1.04, as the sales tax increases the cost by four percent.