1985 AJHSME Problem 14

Problem

The difference between a $6.5\%$ sales tax and a $6\%$ sales tax on an item priced at $$20$ before tax is

$\text{(A)}$ $$.01$

$\text{(B)}$ $$.10$

$\text{(C)}$ $$ .50$

$\text{(D)}$ $$ 1$

$\text{(E)}$ $$10$

We are looking for $0.5\%$ of $$20,$ which is $20 \cdot \frac{0.5}{100} = \boxed{\text{(B)} \quad $0.10.}$