Question

A jeweler buys a ring from a jewelry maker for $125. He marks the price up by 150%. What is the selling price of the ring with 8% sales tax?

a) $181.25
b) $206.00
c) $243.00
d) $275.00

Answer 1

To calculate the final selling price of a ring marked up by 150% and including 8% sales tax, multiply the original price by 1.50 to find the markup amount, then add this to the original price for the pre-tax selling price. Next, calculate sales tax by multiplying the pre-tax selling price by 0.08, and add it to the pre-tax selling price for the total cost. The final selling price is $337.50, which is not listed in the given options.

Step-by-step explanation:

To calculate the selling price of the ring after a 150% markup, we first need to determine the amount of the markup. The markup is calculated on the purchase price of the ring, which is $125. To find the markup amount, we can multiply the purchase price by the markup percentage, expressed as a decimal:

$125 \(\times\) 1.50 = $187.50 (markup amount)

Adding the markup amount to the original purchase price gives us the pre-tax selling price:

$125 + $187.50 = $312.50 (pre-tax selling price)

Next, we need to calculate the sales tax which is 8%. We convert the percent to a decimal and multiply by the pre-tax selling price:

$312.50 \(\times\) 0.08 = $25.00 (sales tax)

Finally, we add the pre-tax selling price and the sales tax to find the final selling price:

$312.50 + $25.00 = $337.50

The final selling price of the ring, including sales tax, is $337.50, which means the correct answer is none of the options provided.

Answer 2

After marking up the original price of $125 by 150% and adding an 8% sales tax, the final selling price of the ring is $337.50, which doesn't match the provided options.

Step-by-step explanation:

To determine the selling price of the ring with a markup and sales tax, we perform two calculations. First, we calculate the markup on the purchase price, then we calculate the sales tax on the marked-up price.

The jeweler marks up the $125 ring by 150%. The markup is the percentage increase from the original price. To find the increased price:

Original Price = $125

Markup Percentage = 150% = 1.50 (as a decimal)

Markup Amount = Original Price × Markup Percentage = $125 × 1.50 = $187.5

New Price (before tax) = Original Price + Markup Amount = $125 + $187.5 = $312.5

Next, we calculate the sales tax which is 8% of the selling price. Convert the sales tax rate to a decimal by dividing by 100:

Sales Tax Percentage = 8% = 0.08 (as a decimal)

Sales Tax Amount = New Price × Sales Tax Percentage = $312.5 × 0.08 = $25

Total Price (with tax) = New Price + Sales Tax Amount = $312.5 + $25 = $337.5

Therefore, after applying the markup and the sales tax, the final selling price of the ring is $337.50, which is not one of the options provided, indicating a possible mistake in the calculation or the available choices.