Question

A store buys a video game for the wholesale price of $29.95. The markup on the game is 80%. If sales tax is 7.5%, how much money would you need to buy the game?

Answer 1

57.9532

Explanation:

Given that:

Wholesale price = 29.95

Markup = 80%

Sales tax = 7.5%

Retail price of the game :

Price before sale tax:

Wholesale price * ( 1 + markup %)

29.95 * (1 + 0.8)

29.95 * (1.8)

$53.91

Sales tax = 7.5%

53.91 * (1 + 0.075)

53.91 * (1.075)

= 57.9532

Hence, $57.9532 will have to be paid