Acertain car costs $6,595 before taxes are added. taxes are $460 and license tags cost $55. what is the overall tax rate (to the nearest tenth)?

a) 0.8
b) 7.8
c) 7.0
d) 12.8

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

= × 100

= 6.97% ≈ 7.0%

Overall tax rate of the car is 7.0%. Option c. 7.0 is the correct answer.