Question

In Minnesota, the state sales tax rate is 6.875%. The price tag on an HDTV gives

the price as $1560, plus a $100 rebate.. What is the total cost for the TV, including
sales tax and rebate in Minnesota?

Answer 1

1560.38

Explanation:

As far as I know, a sales tax is never calculated until money changes hands. So the rebate is the first amount to take place.

1560 - 100 = 1460

Now if the purchaser agrees to this amount and does anything to pay partially or in full, the tax is added.

Total Cost = 1460 * (1.06875)

Total Cost = 1560.38

Edit

You have to be very careful when you use a term like rebate. Rebate is a very special kind of discount. Your purchase has to qualify for a rebate. Apparently this one does. If you are willing to spend 1560 on something, the merchant selling the product offers you a rebate to help you decide.

If the TV cost is 1200 you may not get the rebate.