You will pay $0.20 (20 cents) more on a $20 purchase.
To find a percentage of any number we just need to multiply the number by the percentage and divide by 100
First, we'll find the 7% of $20:
[tex]\frac{7*20}{100} =\frac{140}{100} =1.40[/tex]
Next, we'll find the 8% of $20:
[tex]\frac{8*20}{100} =\frac{160}{100} =1.60[/tex]
Finally, we just need to subtract $1.40 form $1.60:
[tex]Tax Increment=1.60-1.40=0.20[/tex]
We can conclude that after the increasing of sales tax from 7% to 8%, you will pay $0.20 (20 cents) more on a $20 purchase.
