Question

Store A

Store B
What is the cost of the repair and sales tax combined
at Store B?
Computer
Repair
$1,200
$1,350
$1,200
Sales Tax
6%
7%
$1,350
Gratuity
15%
15%
$1,444.50
$2295
Shipping
Free
2% of total
price

Answer 1

$172.5

Explanation:

Store A is defintley better because 6% of sales tax is $72 and $1200 + $71 = $1272 while store B: 7% of $1350 is $94.5 and $1350 + $94.5 = $1444.5. To find out how much you would save by using store A, you would simply subtract it = $1444.50 - $1272 = $172.5

Answer 2

Answer: Choice C) $1,444.50

========================================================

There are two methods to get the answer.

The slightly longer method is to take 7% of the original price to get

7% of 1350 = (7/100)*1350 = 0.07*1350 = 94.50

The sales tax is $94.50

Add this onto the original price to get 1,350+94.50 = 1,444.50

----------------------------

A shortcut is to multiply the original price by 1.07

The multiplier 1.07 represents a 7% increase since

• 1 = 100%
• 0.07 = 7%
• 1.07 = 1 + 0.7 = 100% + 7%

So we will have 1.07*1350 = 1,444.50