Tax on Tax Percentage Problem with solving solution

Example: You buy an item for $50, and there's a 10% sales tax on it. Then, there's an additional 5% luxury tax on the total cost. What's the final cost?

Solution:

• First, calculate the sales tax: 10% of $50 = $5.
• Now, add the sales tax to the original price: $50 + $5 = $55.
• Finally, calculate the luxury tax: 5% of $55 = $2.75.

The final cost is $55 + $2.75 = $57.75.