Calculate the total cost to rent the equipment shown in the table for 3 months. Furniture rental costs 10% of the value of the furniture per month and is subject to 8.25% sales tax.

Furniture Rental

\begin{tabular}{|l|c|}
\hline
Item & Value, per piece \\
\hline
Sofa (1) & \[tex]$1,400 \\
\hline
Office Chair (6) & \$[/tex]180 \\
\hline
Conference Table (1) & \$2,000 \\
\hline
\end{tabular}

Calculate the total cost and round to the nearest cent.



Answer :

To calculate the total cost to rent the furniture for 3 months, we follow these steps:

1. Calculate the total value for each type of furniture:
- Sofa: There is 1 sofa with a value of \[tex]$1400. \[ \text{Total sofa value} = 1 \times 1400 = \$[/tex]1400
\]
- Office chairs: There are 6 office chairs, each valued at \[tex]$180. \[ \text{Total office chair value} = 6 \times 180 = \$[/tex]1080
\]
- Conference table: There is 1 conference table with a value of \[tex]$2000. \[ \text{Total conference table value} = 1 \times 2000 = \$[/tex]2000
\]

2. Calculate the total value of all the furniture:
[tex]\[ \text{Total furniture value} = 1400 + 1080 + 2000 = \$4480 \][/tex]

3. Calculate the monthly rental cost:
The rental cost per month is [tex]\(10\%\)[/tex] of the total furniture value.
[tex]\[ \text{Monthly rental cost} = 0.10 \times 4480 = \$448.00 \][/tex]

4. Calculate the rental cost for 3 months (without tax):
[tex]\[ \text{Rental cost for 3 months} = 3 \times 448.00 = \$1344.00 \][/tex]

5. Calculate the sales tax on the rental cost:
The sales tax is [tex]\(8.25\%\)[/tex] of the rental cost for 3 months.
[tex]\[ \text{Sales tax} = 0.0825 \times 1344.00 = \$110.88 \][/tex]

6. Calculate the total rental cost including sales tax:
[tex]\[ \text{Total rental cost} = 1344.00 + 110.88 = \$1454.88 \][/tex]

So, the total cost to rent the equipment for 3 months, including sales tax, is [tex]\(\$1454.88\)[/tex].