Question

Tara looks up hotel room prices for a holiday. A hotel has a 25% off sale on its prices. A VAT charge of 20% must be added on at the end of the transaction after any discount. If the regular price of a room is £160 per night, how much will Tara pay for 7 nights?

Answer 1

$1008

Explanation:

We begin by calculating the amount after the 25% discount

= regular price*0.75

=£160*0.75

=$120

We then continue by calculating the the amount that must be paid when 20% VAT is added

= 120*1.20

= $144

Now Tara is going to spend 7 nights

Hence she will have to pay

144*7= $1008