Find the amount of tax and the tax rate. Round to two decimal places. Cost of item: \( \$ 92 \) Selling price: \( \$ 108.05 \) Tax amount: \( \$ \square \) Tax rate: Next Question

To find the amount of tax and the tax rate, we can use the formula: \[ \text{Tax Amount} = \text{Selling Price} - \text{Cost of Item} \] Given: - Cost of item: $92 - Selling price: $108.05 Let's calculate the tax amount and then find the tax rate. Calculate the value by following steps: - step0: Calculate: \(108.05-92\) - step1: Subtract the numbers: \(16.05\) The tax amount is $16.05. Now, to find the tax rate, we can use the formula: \[ \text{Tax Rate} = \frac{\text{Tax Amount}}{\text{Cost of Item}} \times 100\% \] Substitute the values: \[ \text{Tax Rate} = \frac{16.05}{92} \times 100\% \] Let's calculate the tax rate. Calculate the value by following steps: - step0: Calculate: \(\frac{16.05}{92}\times 100\) - step1: Divide the terms: \(\frac{321}{1840}\times 100\) - step2: Reduce the numbers: \(\frac{321}{92}\times 5\) - step3: Multiply: \(\frac{321\times 5}{92}\) - step4: Multiply: \(\frac{1605}{92}\) The tax rate is approximately 17.45%. Therefore, the tax amount is $16.05 and the tax rate is approximately 17.45%.