Answer:
Option c. 7.0 is the correct answer.
Step-by-step explanation:
Cost of a certain car before taxes = $6,595.00
Taxes = $460.00
License tags cost = $55.00
The question asked about the tax rate, cost of license tags is not a tax, this is an expense.
so we calculate the tax rate
= [tex]\frac{460}{6595}[/tex] × 100
= 6.97% ≈ 7.0%
Overall tax rate of the car is 7.0%. Option c. 7.0 is the correct answer.
