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Difficulty: EasyDiscounts and Sale Prices

A catering manager is purchasing a commercial blender. The regular price of the blender is $400\$400. The store offers a 20%20\% discount. If a 5%5\% sales tax is applied to the discounted price, what is the final cost of the blender?

  1. A
    $399\$399
  2. $336\$336Answer
  3. C
    $340\$340
  4. D
    $84\$84

Answer

The final cost is $336\$336.
To solve this problem, first determine the discount amount by multiplying the original price by the discount percentage: $400×0.20=$80\$400 \times 0.20 = \$80. Subtract this from the original price to find the discounted sale price: $400−$80=$320\$400 - \$80 = \$320. Next, calculate the 5%5\% sales tax on this new price: $320×0.05=$16\$320 \times 0.05 = \$16. Finally, add the tax to the sale price to find the total cost: $320+$16=$336\$320 + \$16 = \$336.

Step-by-Step Solution

1
Calculate the discount amount.
$400×0.20=$80\$400 \times 0.20 = \$80
To determine how much money is saved from the 20%20\% discount.
2
Calculate the sale price before tax.
$400−$80=$320\$400 - \$80 = \$320
To find the price that is actually subject to the sales tax.
3
Calculate the sales tax amount.
$320×0.05=$16\$320 \times 0.05 = \$16
To determine the additional amount owed for the 5%5\% tax on the sale price.
4
Calculate the final total cost.
$320+$16=$336\$320 + \$16 = \$336
To find the total amount the manager will pay at checkout.

Key Concept

Calculating final sale prices by applying percentage discounts followed by sales tax.

Alternative Method

You can calculate the final price in a single step using multipliers. A 20%20\% discount means you pay 80%80\% of the price (0.800.80). A 5%5\% tax means you pay 105%105\% of that amount (1.051.05). Chaining these gives: $400×0.80×1.05=$336\$400 \times 0.80 \times 1.05 = \$336.
Estimated Time:1m 0s
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Topics

Discounts and Sale Prices

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