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Difficulty: MediumTaxes and Tips

A customer purchases a tablet with an original price of $300.00. The tablet is on sale for 20% off. After the discount is applied, a 5% sales tax is added to the sale price. What is the final total cost of the tablet?

  1. A
    $241.20
  2. $252.00Answer
  3. C
    $255.00
  4. D
    $294.00

Answer

$252.00
To find the total cost, first find the sale price by calculating 20% of 300.00,whichis300.00, which is 60.00. Subtract this discount from the original price to get 240.00.Next,calculatethe5240.00. Next, calculate the 5% sales tax on this new sale price: 0.05 × 240.00 = 12.00.Finally,addthetaxtothesaleprice:12.00. Finally, add the tax to the sale price: 240.00 + 12.00=12.00 = 252.00.

Step-by-Step Solution

1
Calculate the discount amount.
20% of 300.00=0.20×300.00 = 0.20 × 300.00 = $60.00
The discount must be determined to find the sale price.
2
Subtract the discount from the original price.
300.00−300.00 - 60.00 = $240.00
This provides the discounted sale price upon which tax is calculated.
3
Calculate the sales tax on the sale price.
5% of 240.00=0.05×240.00 = 0.05 × 240.00 = $12.00
Sales tax is always applied to the final discounted price of the item.
4
Add the sales tax to the sale price.
240.00+240.00 + 12.00 = $252.00
This determines the final total cost the customer must pay.

Key Concept

Calculating sequential percentages in multi-step financial problems (applying discounts before taxes).

Alternative Method

You can solve this using multipliers in a single step: Total Cost = Original Price × (1 - Discount Rate) × (1 + Tax Rate). Here, 300.00×0.80×1.05=300.00 × 0.80 × 1.05 = 252.00.
Estimated Time:1m 30s
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Topics

Taxes and Tips

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