Question

You have a 10% off coupon for the paper towels that are 6.99. The tax rate is 8%. Find the discount amount and tax amount

Answer 1

The tax amount = $0.5592

The discount amount = $0.755

Explanation:

Here, the Marked Price of the paper towels = $6.99

Now, the tax on the marked price = 8%

Calculating the tax amount on Marked price, we get:

8% of 7.99 =
`(8)/(100)  * 6.99  =  0.5592`

So, the tax amount = $0.5592

Now, the Selling Price = Marked Price+ Tax

= $6.99 + $ 0.5592 = $7.5492

⇒Selling Price = $7.5492

Calculating the discount amount on Selling price, we get:

10% of $7.5492 =
`(10)/(100)  * 7.5492  =  0.75492`

So, the discount amount on selling price = $0.755