Question

A pair of basketball shoes's normal price is $120. Jordan bought it at a discount of 10%. He had to pay 8% tax on the discounted price. If jordan put 15% of the final cost (including tax) as a down payment, how much money did he have to pay for the down payment?

Answer 1

$17.50

Explanation:

If the shoes are discounted at 10%, the price would be 90% of the original price

Discounted price = 0.9 x 120 = 108

Tax increases the price of the good. so, the discounted price would increase by 8%

1.08 x 108 =116.64

If Jordan pays 15% as a down payment, he would pay :

0.15 x 116.64 = 17.496