Question

A pawn show purchase a DVD player for $12.00 and sold it to a customer for 40% more than the purchase price. The customer was charge 7.5% tax when the DVD player was sold. What was the total, including tax?

Answer 1

$18.06

Explanation:

The price the pawn shop charged for the DVD player was 40% more than what it paid, so was ...

$12.00 + $12.00 × 0.40 = $12.00×(1 +0.40) = $16.80

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The tax on the purchase is this price multiplied by the tax rate:

tax = 0.075×$16.80 = $1.26

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Then the total including tax is ...

$16.80 +1.26 = $18.06 . . . . . total cost of the DVD player