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4 votes
You want to purchase

a pair of shoes for the
summer. Normally
they cost $79.99.
They are on sale for
15% off, or you also
have a $10 off
coupon. Including
sales tax at 10.3%,
what is the total
savings between
using the coupon and
taking the discount?

User Buzjwa
by
8.2k points

1 Answer

1 vote

Answer:

$2.21

Explanation:

You want to know the savings between using a $10 off coupon and taking a 15% discount, if the tax rate is 10.3%.

Coupon

The price with the coupon is ...

$79.99 -10.00 = $69.99

When tax is added, the total becomes ...

$69.99 × 1.103 ≈ $77.20

Discount

The price with the discount is ...

$79.99 × (1 -0.15) ≈ $67.99

When tax is added, the total becomes ...

$67.99 × 1.103 ≈ $74.99

Savings

The savings by making use of the discount is ...

$77.20 -74.99 = $2.21

The total savings between the coupon and the discount is $2.21. That is, you save $2.21 more by using the discount instead of the coupon.

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Additional comment

The question seems a bit ambiguous. The word "or" suggests you cannot use both discounts. If you do, the total amount saved will depend on the order in which they are applied.

You get the best result by taking the $10 off the sale price. Doing that gives you a total savings of about $24.27 off the normal price with tax.

User Kern Elliott
by
7.7k points