Question

Sara goes to a furniture store to buy a dining set, end tables, and a loveseat. She sees a lamp for $40 and an end table for $62; both with a 12.5% tax. She finds 2 loveseats she likes. One is imported Italian leather worth $1200 with an additional 2% charge and no taxes. The other is a lush blue loveseat worth 980 with 17% taxes. If she purchases either the leather loveseat or the lush blue loveseat and lamp, what is the purchase price of the cheaper option?

Do not include $ in answer and round the purchase price to the nearest hundredth. For example, if the answer is $7.236, put 7.24.

Answer 1

$1191.60

Explanation:

Option 1:

Leather Loveseat

1200 plus 2% extra charge and NO TAX

What is 2% of 1200??

0.02 * 1200 = 24

So total price = 1200 + 24 = $1224

Option 2:

Lush Blue Loveseat and Lamp

Lush Blue loveseat is 980 + 17% tax, that would be worth 980 + (0.17)(980) = $1146.6

and

lamp is worth 40 with 12.5% tax, that would be worth 40 + (0.125)(40) = $45

Total cost = 1146.6 + 45 = $1191.6

2nd option is cheaper, so that would cost $1191.60