First step is to turn 5% into a decimal -- 0.05 Next, find out what 5% of $32.55 is by multiplying 0.05 x 32.55 = 1.6275 Round to the nearest cent = $1.63 This is the amount of tax $32.55 If we want to know what it the book costs before tax we simply take the tax off. $32.55 - $1.63 = $30.92
