Question

Frank buys a commemorative plate for $375, plus 6% sales tax. He pays an

additional $6.50 to have the plate shipped to him, but he does not pay sales tax
on the shipping charge. Three years later, he sells the plate for 10% more than
the total he paid for the plate, including taxes and shipping charges. What is his
net profit?

Answer 1

$39.75

Explanation:

First, you find the tax by dividing the cost of the plate by 100, and then multiplying your answer by the tax, 6.:

375/100 = 3.75

3.75*6 = 22.5.

Then add the shipping charges, 375 + 22.5 = 397.5. This is the total cost. SInce Frank sold the plate three years later for 10% more than the total cost, you find 10% of the total cost, and then add that 10% to $397.5

397.5/100 = 3.975

3.975*10 = 39.75

39.75 + 397.5 = 437.25.

To find the profit, subtract 397.5 from $437.25:

437.25 - 397.5 = 39.75.

The total profit is $39.75