Question

Sam lives in Massachusetts and wants to buy a television that costs $2,000. The sales tax in Maine is only 5%, which is less than the 6.25% in Massachusetts. Dave tells Sam to just buy the television in Massachusetts. If gas costs $30 to get to Maine, who is correct? Explain.

Answer 1

Determine the cost in Massachusetts

2000 * 6.25%

2000*.0625

125

The tax is 125 dollars

Total cost is

2000+125 = 2125

Cost in Maine

2000 * 5% + 30 gas

2000 *.05

100

The tax is 100 plus the 30 dollars in gas

Total cost is

2000 + 100+30

2130

It will cost more to go to Maine than to buy it in Mas

Dave is correct, buy it in Mass.