Question

Greg lives in a state with an 8% sales tax, and he has $20 in his pocket. Select all the prices of items that Greg can afford after accounting for sales tax.

A) $9.50
B) $10.50
C) $11.00
D) $12.50

Answer 1

After calculating the sales tax for each item by converting the 8% tax to a decimal and adding it to the item's price, Greg can afford items A, B, and C which have total costs of $10.26, $11.34, and $11.88 respectively.

Step-by-step explanation:

The subject of this question is Mathematics, specifically related to calculating the total cost of items including sales tax. To determine which items Greg can afford, we need to account for the 8% sales tax in his state. To do this, we convert the percentage to a decimal and then multiply it by the price of the item to find the amount of sales tax.

For example

1. To find the total cost with tax for an item priced at $9.50, we calculate $9.50 × 0.08 = $0.76. Adding the sales tax to the item's price gives us $9.50 + $0.76 = $10.26 total cost.
2. For a $10.50 item, it's $10.50 × 0.08 = $0.84 in tax, so the total cost is $10.50 + $0.84 = $11.34.
3. A $11.00 item incurs $11.00 × 0.08 = $0.88 in tax, making the total $11.00 + $0.88 = $11.88.
4. And a $12.50 item has $12.50 × 0.08 = $1.00 in tax, resulting in a total cost of $12.50 + $1.00 = $13.50.

Since Greg has $20, he can afford any item where the total cost does not exceed this amount. Therefore, prices A, B, and C are all options that Greg can afford after accounting for sales tax, as their total costs are $10.26, $11.34, and $11.88, respectively, which are all less than $20.