Expert: Josh - 10/19/2009

Question
I lost my job about a year ago and just simply cannot find a job. I have decided to go back to college . Having to take the hobit test and one of the practice questions is  The city council has decided to add a 0.3% tax on motel and hotel rooms. If a traveler spends the night in a motel room that costs $55 before taxes, how much will the city receive in taxes from him? answer 21 cents
 no matter how many times i try to work this I dont get 21 cents. can you help please.
Thank you
John

Answer
Dear John

From the information you have given, 21 cents does not seem to be the right answer. Clearly, (0.3/100) x $55 = $0.165. Unless we are missing something, the only way to make sense of the "21 cents" is if the council is already receiving 0.0818% tax on motel room before new changes are introduced.