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The sales tax rate is a percentage of the purchase price and represents the amount you are charged for sales tax.
When you want to determine the sales tax rate, you need to follow a few simple steps.
First, you need to know the amount of sales tax and the purchase price of the item.
In the example, the sales tax (T) is \$35.80 and the purchase price (P) is \$895.
Use the formula for the sales tax rate, which is given by \( r = \frac{T}{P} \) to find the rate (r).
Substitute the given values: \( r = \frac{35.80}{895} \).
Perform the division to get the decimal form of the sales tax rate, which is \( r = 0.04 \).
This value now needs to be converted to a percentage for better understanding.

Fraction simplification is the process of reducing fractions to their simplest form.
Fractions show the relationship between two numbers, typically a numerator (top number) and a denominator (bottom number).
To simplify a fraction, you divide both the numerator and the denominator by their greatest common divisor (GCD).
In step 4 of the solution, we see the fraction \( \frac{35.80}{895} \).
To simplify it, you can either perform the division directly or first find a common factor.
In this example, we perform the division directly: \( \frac{35.80}{895} = 0.04 \).
This simplifies to a decimal, which we can then convert to a more familiar percentage.

Converting a decimal to a percentage is a straightforward process.
Since a percentage is essentially a fraction out of 100, you can convert a decimal by multiplying it by 100.
For example, in the previous steps, we calculated the sales tax rate as a decimal value \( r = 0.04 \).
To convert this decimal to a percentage, multiply by 100: \( 0.04 \times 100 = 4 \% \).
Now, the sales tax rate is expressed as a more intuitive percentage, which is 4%.
This makes it easier to understand the portion of the purchase price that goes to sales tax.