We have been given that Mr. Luis wants to sell his house. The state he lives in charges a 3.5% sales tax on the sale of a house. The county charges a 3.9% sales tax, and the city charges a 2.2% sales tax.
We are asked to find the total tax, if Mr Luis sells his home for $122,500.
To find total tax, we will add all tax rates as they are being applied to same base.
[tex]\text{Total of tax rates}=3.5\%+3.9\%+2.2\%[/tex]
[tex]\text{Total of tax rates}=9.6\%[/tex]
Now we will find 9.6% of $122,500 to find total tax bill.
[tex]\text{Total tax bill}=\$122,500\times \frac{9.6}{100}[/tex]
[tex]\text{Total tax bill}=\$1225\times 9.6[/tex]
[tex]\text{Total tax bill}=\$11,760[/tex]
Therefore, the total tax bill of Mr. Luis would be [tex]\$11,760[/tex].
