Question

You have $60.00. You wish to buy a jacket costing $25.50. You would also like to buy a pair of shorts. There is a 7% sales tax on clothing. What is the top tag price (excludes sales tax) you could pay for the shorts?

Answer 1

$30.57

Explanation:

Your budget requires ...

((jacket cost) + (shorts cost)) × 1.07 ≤ $60

Dividing by 1.07, we get ...

(jacket cost) + (shorts cost) ≤ $56.07

Subtracting the jacket cost, we have ...

(shorts cost) ≤ $56.07 -25.50

(shorts cost) ≤ $30.57

The maximum price tag is $30.57.