Question

A man buys furniture that has a list price of $255. He is allowed a discount of 12%

but must pay a sales tax of 3% on the cost. Which of the following is the amount he
actually pays for the furniture:
(A) $217.67
(B) $231.13 (C) $224.40 (D) $232.50 (E)
none of these.

Answer 1

Option B. $231.13 is the correct answer.

Explanation:

Given that

Listed price of furniture = P = $255

Discount = d = 12%

Sales tax = s = 3%

First of all, we have to find the discounted price by calculating the discount first

So,

`Discount = 12\%\ of\ P\\= 0.12*255\\= 30.6`

Discounted Price:

`= Listed\ Price - Discount\\= 255 - 30.6\\= 224.4`

The sales tax will be calculated on the discounted price

So,

`Sales\ tax = 3\%\ of\ Discounted\ price\\= 0.03 * 224.4\\= 6.732`

Now,

`Final\ price\ of\ furniture = Discounted\ price + Sales\ tax\\= 224.4 + 6.732\\=231.132`

He will actually pay $231.132 for the furniture.

Hence,

Option B. $231.13 is the correct answer.