It is important to know about the percentage first, the percent number is per 100. It can be determined by this formula
A% = A/100
where A is the value or the price
From the text we know that :
initial tax rate = 7.0%
final tax rate = 7.5%
item price = $200
By using percentages, we can know the tax price
Initial tax price
initial tax price = initial tax rate x item price
initial tax price = 7.0% x 200
initial tax price = 7/100 x 200
initial tax price = $14
Final tax price
final tax price = final tax rate x item price
final tax price = 7.5% x 200
final tax price = 7.5/100 x 200
final tax price = $15
The increase in sales tax = Final tax price - Initial tax price
The increase in sales tax = $15 - $14
The increase in sales tax = $1
Hence, the increase in the sales tax is $1.
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