To solve this problem, we need to calculate the sales tax based on the provided selling price and the rate of sales tax.

Given Data:

• Selling Price: $50.00
• Rate of Sales Tax: 5%

Step-by-Step Solution:

1. Calculate the Sales Tax Amount: $\text{Sales Tax} = \text{Selling Price} \times \frac{\text{Rate of Sales Tax}}{100}$ $\text{Sales Tax} = 50.00 \times \frac{5}{100} = 50.00 \times 0.05 = 2.50$

So, the sales tax is $2.50.

2. Calculate the Total Cost of the Item (Selling Price + Sales Tax): $\text{Total Cost} = \text{Selling Price} + \text{Sales Tax}$ $\text{Total Cost} = 50.00 + 2.50 = 52.50$

Thus, the total cost of the item is $52.50.

Would you like further details, or do you have any questions?

Related Questions:

1. How do you calculate sales tax for different rates?
2. What is the formula for finding the total cost including sales tax?
3. How would the calculation change if the selling price were increased?
4. What would the total cost be if the sales tax rate was 7% instead of 5%?
5. How is sales tax calculated in other types of transactions, like discounts?

Quick Tip:

When calculating percentages, converting the percentage rate to a decimal (like 5% to 0.05) makes the multiplication straightforward.