A shirt is priced at \$24. If a 6\% sales tax is applied, what is the total cost to the nearest cent?

• A. \$24.60
• B. \$25.20
• C. \$25.44
• D. \$24.06

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the problem. The shirt is priced at \$24, and a 6% sales tax is applied. To find the total cost, you need to calculate the sales tax and add it to the original price.
2. Step 2: Calculate the sales tax amount. Use the formula: Sales Tax = Price × Sales Tax Rate. In this case, the price is \$24 and the sales tax rate is 6%. Represent this calculation as: $\mathrm{Sales}\mathrm{Tax}=\mathrm{Price}\times \mathrm{Rate}$
3. Step 3: Add the sales tax to the original price to find the total cost. Use the formula: Total Cost = Price + Sales Tax. Represent this calculation as: $\mathrm{Total}\mathrm{Cost}=\mathrm{Price}+\mathrm{Sales}\mathrm{Tax}$
4. Step 4: Round the total cost to the nearest cent. This ensures the final value is appropriately formatted for currency.
5. Step 5: Compare the calculated total cost to the provided options (\$24.60, \$25.20, \$25.44, \$24.06) to identify the correct answer.