Question

Alice Smith bought a clothes dryer that retailed for $325 . She received a 15% discount because she works at the store where she bought the dryer . What was her cost after paying a 7.5% sales tax ?

Answer 1

296.97

Explanation:

Remark

The first thing you have to realize is that you take the discount before you add the sales tax.

Discount

If she receives a 15% discount, she still pays 85% of the full price.

85/100 * 325 = 276.25

Sales Tax

A sales tax is only added on after a goods or service has been determined and agreed upon by the buyer and seller.

The sales tax can be calculated quickly by adding the decimal equivalent onto 1 and multiplying that by the discounted amount.

1 + 7.5% = 1 + 7.5/100 = 1 + 0.075 = 1.075 deriving the discount amount

Cost

Cost = discounted price * 1.075 Substitute in Formula

Cost = 276.25 * 1.075 Simplify

Cost = 296.97 Answer