Question

Monica bought a sweater for $48.00. A week later the sweater went on sale for 25% off the original price. If Monica needed to pay 7% sales tax on any purchase, how many dollars would Monica have saved by waiting to buy the sweater on sale?

A. $12.84

B. $12.00

C. $2.52

D. $0.84

Answer 1

A $12.84

Explanation:

Sweater was originally $48.00 before tax. $48.00 x 7% tax rate (.07) = $3.36 in tax

So the sweater originally would've cost $48.00 + $3.36 = $51.36

The sale price was 25% off the $48.00. $48.00 x 25% (.25) = $12.00

Then you subtract the $12.00 from the $48.00 to get the new price of $36.00

Now that's before tax, so $36.00 x 7% tax rate (.07) = $2.52 in tax

So the sweater would cost on sale $36.00 + $2.52 = $38.52

To figure out how much she would've saved you subtract the sale price & tax from the original price & tax $51.36 - $38.52 = $12.84