A DVD movie sells for $25 and the sales tax is 6.5%. What is the total cost of the movie to the nearest penny

Hello! First, let's add 1 to the tax rate in decimal form. 6.5% is 0.065. 1 + 0.065 is 1.065. Multiply that number by 25 to get 26.625 or 26.63 when rounded to the nearest penny. The total cost of the movie is $26.63.

Note: If a question asks for the total cost with tax, always add 1 to the tax rate in decimal form. That way, you will get straight to the answer and not have to do any complicating work.