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Suppose there is a 15 % federal excise tax on indoor tanning services . How much do you pay , in dollars , in federal excise taxes for a $ 14 tanning session ?

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SOLUTION:

If the excise tax rate is 15%.

For a tanning session of $14, We would pay 15% of that in federal excise taxes.

This amounts to;

[tex]\frac{15}{100}\times14=\text{ \$}2.1[/tex]

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