Calculating Total Cost with a Consumption Tax

A product is listed with a price of $80 before any taxes are applied. If a 5% consumption tax is levied on the sale, what is the final amount a customer must pay?

A consumer purchases a product with a pre-tax price of 'P'. The government levies a consumption tax at a rate of '$t_v$' (expressed as a decimal). Which of the following expressions correctly represents the total amount the consumer must pay?

A 10% consumption tax means that for every $100 a consumer earns as income, they must pay $10 in tax to the government.