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Jenna raised $55 to buy a prize for the school fundraiser. The item costs $49.99 + 5% GST. Does she have enough money?

User Teddy C
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1 Answer

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Final answer:

After calculating the Goods and Services Tax on the item by converting the percentage to a decimal, multiplying it by the cost, and rounding to the nearest penny, Jenna has sufficient funds to purchase the prize for the fundraiser and some money left over.

Step-by-step explanation:

Jenna needs to determine if she has enough money to purchase a prize for a school fundraiser that costs $49.99 with an additional 5% Goods and Services Tax (GST). To calculate the total cost, Jenna must first find the amount of GST by converting 5% to a decimal and multiplying it by the item's cost.

The calculation is as follows: $49.99 × 0.05 = $2.4995, which when rounded to the nearest penny becomes $2.50. Adding the GST to the original price gives us $49.99 + $2.50 = $52.49. Therefore, with $55, Jenna indeed has enough money as the total cost is $52.49, and she will have $2.51 remaining.

User Qi Chen
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