Question

Nick lives in Wyoming, which has a sales tax of 4%. He just bought a winter coat whose full price was $180, but he presented the retailer with a coupon for $30, which the retailer accepted. What was the total amount that Nick paid?

Answer 1

If their area has a sales tax of 4% and he just bought a winter coat with a full price of $180, but he presented the retailer with a coupon for $30. The amount that Nick paid is $150 (deducted by the coupon - $30) plus the 4% tax ($6), so the total amount equals to $156.

Answer 2

The amount paid by Nick is:

$ 157.20

Explanation:

The full price of the winter coat is given by: $ 180

Also, he pays a sales tax of 4%

This means that the tax paid on coat is:

4% of 180

= 0.04×180

= $ 7.2

This means that the coat will cost= Actual Price of coat+Sale Tax on coat

Cost of coat= $ 180+$ 7.2

= $ 187.20

Now it is given that Nick has a coupon of $ 30.

Hence, the price that Nick had to pay for coat is:

Cost of coat-Price of coupon

= $ 197.20-$ 30

= $ 157.20

Hence, Amount paid by Nick is:

$ 157.20