We first find value of tax in dollars.
The difference between the two prices is: 23. 54 - 22 = 1.54
Therefore the sales tax in dollars is 1.54
The tax % will be (amount of tax / original cost price ) × 100
(1.54 / 22) × 100 → (0.07) × 100 = 7
So the tax rate is 7%
We can double check the answer.
7 % of 22 → (7/100) × 22 → 0.07 × 22 = 1.54
22 + 1.54 = 23.54
