Question

Erica Mickelson bought a new suit to wear to work. She paid $315 for the suit with an 8% sales tax. She had the suit dry-cleaned three times a year at a cost of $16.50 eachtime. She wore the suit for four years. What was the average annual cost of the suit?

Answer 1

Original Price = $315

Sales Tax = 8%

Price with Sales Tax = 315 x 1.08 = $340.20

Dry Clean Cost = $16.50

Number of dry cleaning = 3 times a year for 4 years = 3 x 4 = 12 times

Cost of Dry Cleaning = 16.50 x 12 = $198

Thus,

Total Cost = $340.20 + $198 = $538.20

Now, the average cost per year would be 538.20 dollars divided by the total number of years, which is 4. Thus,

Average Cost Per Year = 538.20/4 = $134.55 (4th answer choice)