Question

Part B:

Louis wants to buy skis that have a regular price of $328. They have been marked down 25% off the regular price. Louis calculates the new total price including tax.

How much money will Louis save on the total cost because of the markdown?

Answer 1

Part A

Calculate sale price and add sales tax:

• 20% off $339 add tax ⇒ $339*0.8*1.085 = $294.25 ≤ $300
• 15% off $310 add tax ⇒ $310*0.85*1.085 = $285.90 ≤ $300
• 25% off $365 add tax ⇒ $365*0.75*1.085 = $297.02 ≤ $300
• 20% off $300 add tax ⇒ $300*0.8*1.085 = $260.40 ≤ $300

Each price is acceptable as less than $300

Part B

Markdown with tax added:

• 25% off $328 add tax ⇒ $328*0.75*1.085 = $266.91

Without discount, the price with the tax added:

• $328*1.085 = $355.88

The difference is the amount Luis has saved:

• $355.88 - $266.91 = $88.97