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 $20 \cdot \frac{0.5}{100} = \boxed{\text{(B)} \quad \$0.10.}$