Question

The price of a heater selling for $296 is initially discounted by 18% and later marked up by 18%. What is the final sales price rounded to the nearest cent?

A) $296.00

B) $268.64

C) $268.00

D) $315.04

Answer 1

To find the final sales price of a heater after an 18% discount and an 18% markup, calculate the discount amount, reduce the original price, find the markup amount, and add it to the discounted price. This shows the initial discount and markup cancel each other out, resulting in the original price as the final sales price, thus the correct option is A) $296.00.

Step-by-step explanation:

The question involves calculating the final sales price of a heater after a discount and a markup. To solve this, you first find the discounted price by reducing the original price by 18%. Then, you calculate the new price by adding an 18% markup on the discounted price. Let's break down the steps:

• Calculate the amount of the initial discount: 18% of $296 = 0.18 × $296 = $53.28.
• Subtract the discount from the original price to get the discounted price: $296 - $53.28 = $242.72.
• Calculate the amount of the markup on the discounted price: 18% of $242.72 = 0.18 × $242.72 = $43.69.
• Add the markup to the discounted price to get the final sales price: $242.72 + $43.69 = $286.41.

After rounding to the nearest cent, the final sales price of the heater is $286.41.

Thus, the correct option for the final sales price is A) $296.00, since the initial discount and subsequent markup cancel each other out when expressed as a single percentage change.