Hello Keli,

You are quite right! If you just want to calculate how much tax you would pay on an item you would multiply the dollar amount by 0.13; However, if you wish to calculate the total cost of an item
(price+tax) you would multiply the dollar amount by 1.13, for example:

Let's say you wanted to buy a $2 item, you would pay $(0.13)(2)= $0.26 in taxes.
But, in total, you would give the cashier $(1.13)(2)= $2.26 to pay for the item.

Tyler

You ae right; perhaps the wording is confusing. The total tax [on a dollar] is $0.13, if the taxes are collected independently of each other. The total cost including tax is $1.13.

[If one tax is collected on the price including the other tax, then the final amount is $1.134 and the tax is $0.134.]

Good Hunting!
RD