Question

A $500 TV is marked up 60%. Sales tax is 8.5%. How much will is cost to buy the TV?

Answer 1

$325.00

Explanation:

60% of 500 is 300 so 500-300=200

Now the sales tax is 8.5% so 8.5% of 300 is 25.50 so add 25.50 and you get $325.50

Answer 2

217

Explanation:

The regular price of the TV is 500$

Its marked up 60% from that price.

The mark up is equal to 60% of $500 which is equal to .60 * $500 which is equal to $300

Discount is like a markdown, so subtract $300 from the price of the item before the change to get $500 - $300 = $200

This is the price of the item before tax is applied.

Now you apply the sales tax of 8.5%.

8.5% of $200 is equal to .085 * $200 which is equal to $17

Tax is like a markup, so add $17 to the price of the item before tax was applied to get a selling price of $200 + $17 which is equal to $217