Question

Monica lives in Ohio but she is visiting her grandmother in California. Monica goes shopping with her grandmother. She wants to buy a new bicycle that costs $89.00. The sales tax in California is 7.5%. Monica can buy the same bicycle at the same price when she returns home to Ohio where the sales tax is 7%. If Monica waits until she gets home to buy the bicycle, how much money will she save?

Answer 1

She will save $0.45 if she waits until she get home to buy the bicycle.

`\text{ \$0.45}`

Step-by-step explanation:

Given that;

At California the sales tax is 7.5%

And at Ohio the sales tax is 7%

The cost of the bicycle in both states is;

`\text{ \$89.00}`

Since the price are the same in both states, the difference is only in the amount paid on the sales tax;

`\begin{gathered} 7.5\text{\% - 7\%} \\ =0.5\text{\%} \end{gathered}`

So, the difference in sales tax which is 0.5% is;

`\begin{gathered} d=0.5\text{\% of \$89.00} \\ d=(0.5)/(100)*89 \\ d=0.445 \\ d=\text{ \$0.45} \end{gathered}`

Therefore, she will save $0.45 if she waits until she get home to buy the bicycle.

`\text{ \$0.45}`