Andrew Buys a Shirt Costing $16 A) $098
B) $0

question 107

Multiple Choice

Andrew buys a shirt costing $16.25. Use the table below to find the sales tax on this item. $$\begin{array} { | l | l | } \hline \text { Sales Tax Brackets } \\\hline \text { on } 6 \% \text { taxable transactions } & { } \\\hline \text { Amount of Sale } & \text { Tax } \\\hline 15.42 - 15.58 & 0.93 \\\hline 15.59 - 15.74 & 0.94 \\\hline 15.75 - 15.91 & 0.95 \\\hline 15.92 - 16.08 & 0.96 \\\hline 16.09 - 16.24 & 0.97 \\\hline 16.25 - 16.41 & 0.98 \\\hline\end{array}$$

• A) $0.98
• B) $0.95
• C) $0.93
• D) $0.96

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Definitions:

Trading Investments

Securities that a company purchases with the intention of selling in the short term for a profit.

Long-Term Investment

Assets purchased for the purpose of holding them for an extended period, often years, such as stocks, bonds, or real estate.

Bonds

Long-term instruments of debt issued by corporations or governments, promising to pay back the principal along with interest at a future date.

Equity Securities

Financial instruments that represent an ownership interest in a company, such as stocks.