Answer:
You should find the discounted price of the gear first.
The discount should be calculated on the original $100 price.
Explanation:
- Original price = $100
- Discount = 40%
- Discounted price = $100 * 0.6 = $60
- Sales tax = 7%
- Price with added tax = $60*1.07 = $64.2
Now let's check the answer options:
You can simplify the problem by calculating 33% of $100.
- Incorrect. Tax is added to discounted price.
You should find the discounted price of the gear first.
The tax should be calculated on the original $100 price.
- Incorrect. Tax applied to sale price.
The discount should be calculated on the original $100 price.