Question

Two electronics stores sell a video game that has a regular price of $49. A store discounts the video game by $15 and then adds 7.5% sales tax. Store B adds the tax first and then takes the discount. Are the selling prices the same? Justify your answer.

Answer 1

The selling prices are same.

Explanation:

According to the problem, given data are as follows:

Regular price = $49

Store A

Discounts first = $15

Price after discount = $49 - $15 = $34

Now adds 7.5% sales tax = $35 + ( $35 ×7.5%) = $35 + $2.625

So, final selling value = $37.625 or $38

Store B

Adds tax first = $49 + ($49 × 7.5%) = $49 + $3.675 = $52.675

Now deduct discount = $52.675 - $15

So, Final selling price = $37.675 or $38

As there is very minimal or no difference between both prices, so this considers to be same.