If sales tax is 3%, how much tax would you pay for an item that costs $2000

The correct answer is $60. The sales tax is calculated by multiplying the price of the item by the tax rate. In this case, the item costs $2000 and the tax rate is 3% (which is 0.03 as a decimal).

Step‑by‑Step Calculation

• Convert the percentage to a decimal: 3% = 3 ÷ 100 = 0.03.
• Multiply the price by the decimal tax rate: $2000 × 0.03 = $60.
• Alternatively, you can compute 3% of 2000 by first finding 1% (which is $20) and then multiplying by 3 – that also gives $60.

Therefore, the total tax you would pay is $60.

Why the Other Options Are Incorrect

• $80: This would be 4% of $2000 (2000 × 0.04 = 80), not 3%.
• $100: This is 5% of $2000 (2000 × 0.05 = 100), which is a higher tax rate.
• $400: This is 20% of $2000 (2000 × 0.20 = 400), far above the given 3% rate.

Only the $60 calculation correctly applies the 3% tax rate, making it the correct answer.