Hi. First, we need to multiply the $200 x 20% which gives us 40. Next, we subtract the 40 from 200 which gives us $160. Lastly, we multiply the $160 x 6.5% which gives us $10.40.
$200 x 20% = 40
$200 - 40 = 160
$160 x 6.5% = $10.40
Total tax = $10.40
Hope this helps.
Take care,
Diana
