Question

Store A charges $1,200 for repairs with a 6 percent sales tax. Store B charges $1,350 with a 7 percent sales tax. Explain how you would determine the amount of money saved by using Store A instead of Store B?

Answer 1

The total repair cost for each store is the cost of repairs added to the sales tax. The amount of money saved will be the difference between the two total costs.

Answer 2

We know from the question that Store A charges $1200 for repairs and 6% as sales tax.
Then
Amount of sales tax charged by Store A = (6/100) * 1200
= 6 * 12
= 72 dollars
Then the total amount charged by Store A = ( 1200 + 72) dollars
= 1272 dollars
Now coming to Store B. It charges $1350 for repairs and 7% of sales tax.
Amount of sales tax charged by Store B = (7/100) * 1350
= 945/10
= 94.5 dollars
Then the total amount charged by Store B = ( 1350 + 94.5) dollars
= 1444.5 dollars
Amount of money saved by choosing Store A instead of Store B = (1444.5 - 1272) dollars
= 172.5 dollars
So $172.5 is saved by choosing Store A over Store B.