Question

Luis wants to buy a skateboard that usually sells for $79.74. All merchandise is discounted by 12%. What is the total cost of the skateboard if Luis has to pay a state sales tax of 7.25%. Round your intermediate calculations and answer to the nearest cent.

Answer 1

75.26

Explanation:

Most sales taxes work by not being calculated until cash in some form changes hands. So you take the discount first and then you add the sales tax on the new amount.

Take the discount first

Original cost = 79.74

Discount amount = 79.74 * 12% = 79.74 * 12/100 = 9.57

New price = 79.74 - 9.57 = 70.17

Now you are ready to add on the sales tax

70.17 * 7.25/100 = 5.09

The total is 70.17 + 5.09 = 75.26