SOLUTION: The city of Lafayette in the state Louisiana (where I lived for close to 15 years) is planning a major infrastructure expansion. It is considering raising its sales tax whose rat
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: The city of Lafayette in the state Louisiana (where I lived for close to 15 years) is planning a major infrastructure expansion. It is considering raising its sales tax whose rat
Log On
Question 677344: The city of Lafayette in the state Louisiana (where I lived for close to 15 years) is planning a major infrastructure expansion. It is considering raising its sales tax whose rate is currently at 3.5%. If the city plans to collect an increase of 30% in additional revenue, what should the new sales tax rate be? What will be the percent increase in total cost of buying goods for the consumer in Lafayette? Hint: If a quantity changes from P1 to P2, the percent change is given by (P2-P1)/P1 * 100% Answer by aaronwiz(69) (Show Source):
You can put this solution on YOUR website! This hint is making everything way to complicated. It is simply 30% higher than 3.5
so 3.5+.3(3.5)=4.55%
(