Question

Lonnie lives in New Mexico and pays 5% in sales tax. He just bought $80 in groceries, but not $30 worth of those groceries were taxable. What is the total amount that lonnie paid for groceries, including sales tax. A.$84.00 B.$82.50 C.$80.25 D.$80.40

Answer 1

Answer: B. $82.50

Explanation:

Given: The percent of tax Lonnie pays = 5%=0.05

He just bought $80 in groceries, but not $30 worth of those groceries were taxable.

i.e. The taxable amount =
`\$80-\$30=\$50`

Now, the amount of tax on $50 =
`0.05*50=\$2.50`

Now, the total amount that Lonnie paid for groceries, including sales tax is given by :-

`\$80+\$2.50=\$82.50`

Hence, the total amount that lonnie paid for groceries, including sales tax = $82.50 .