Question

A box of spaghetti at the grocery store is purchased for $1.60 wholesale and is marked up by 60 percent. Then, the store marks down the item by 20 percent. A customer wants to buy three boxes of spaghetti. How much will the customer pay, including paying 8 percent sales tax? Round your answer to the nearest cent.

Answer 1

the answer is $8.29

Explanation:

1.60 marked up by 60% in decimal form is .60

multiply that .60 by 1.60 and you get .64

you add .64 to 1.60 and you get 2.56

you multiply 2.56 by 3 and you get 7.68

you have a 8% sales tax so you multiply 0.08 by 7.68

you will get .61 you add that to 7.68 to get $8.29

Answer 2

$6.64

Explanation:

When the price of an item is marked up by a percentage, the new price (after markup) is result when the product of the percentage and the original price added to the original price.

The price after markdown is similar to the mark up except that the product of the percentage and the original price is subtracted from the original price.

Hence when a box of spaghetti at the grocery store is purchased for $1.60 wholesale and is marked up by 60 percent, the new price

=60% * $1.60 + $1.60

$2.56

If the store marks down the item by 20 percent, then the new price becomes

= $2.56 - 20% * $2.56

= $2.048

If a customer wants to buy 3, the price

= $2.048 * 3

= $6.144

Including 8% tax, the price becomes

=$6.144 + 8% * $6.144

= $6.63552

To the nearest cent

= $6.64