Question

Meyer Appliance Store advertised a teapot for $23.95, a coffee maker for $33.95, and a deluxe microwave for $196.75. With a 7% state tax and 2.5% city tax, what is the total purchase price?

a) $255.15
b) $263.40
c) $278.50
d) $291.30

Answer 1

To calculate the total purchase price including taxes, first find the subtotal by adding the prices of all items, then calculate the combined tax rate, and finally add the tax to the subtotal. The total comes to approximately $278.84, with the nearest answer being $278.50 (option c).

Step-by-step explanation:

The student's question involves calculating the total purchase price of several items including state and city taxes. To solve, first, we must add the prices of the teapot, coffee maker, and deluxe microwave to find the subtotal. The teapot costs $23.95, the coffee maker costs $33.95, and the deluxe microwave is priced at $196.75:

• Teapot: $23.95

• Coffee Maker: $33.95

• Deluxe Microwave: $196.75

Adding these together gives us a subtotal of:

$23.95 + $33.95 + $196.75 = $254.65

Next, calculate the total tax by adding the 7% state tax and the 2.5% city tax, which gives us a combined tax rate of 9.5%. Convert this percentage to a decimal by dividing by 100:

9.5% / 100 = 0.095

Multiply this decimal by the subtotal to find the total amount of tax:

0.095 * $254.65 = $24.19

Finally, add the tax to the subtotal to find the total purchase price:

$254.65 + $24.19 = $278.84

Therefore, the nearest answer option to the total purchase price including taxes is $278.50 (option c).