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Question

Difficulty: MediumDiscounts and Sale Prices

A customer is purchasing a winter coat that has an original price of $140\$140. The store offers a 25%25\% discount on the coat. After the discount is applied, a 6%6\% sales tax is added to the purchase. What is the final total cost of the winter coat?

  1. A
    $113.40\$113.40
  2. B
    $121.90\$121.90
  3. $111.30\$111.30Answer
  4. D
    $105.63\$105.63

Answer

The final total cost of the winter coat is $111.30\$111.30.
The correct answer accurately calculates the discounted price first ($105\$105), and then correctly applies the 6%6\% sales tax to that new, lower amount ($105×1.06=$111.30\$105 \times 1.06 = \$111.30).

Step-by-Step Solution

1
Calculate the discount amount.
$140×0.25=$35\$140 \times 0.25 = \$35
To find how much money will be taken off the original price, multiply the original price by the discount percentage.
2
Determine the discounted sale price.
$140−$35=$105\$140 - \$35 = \$105
Subtract the discount amount from the original price to find the price before tax.
3
Calculate the sales tax on the discounted price.
$105×0.06=$6.30\$105 \times 0.06 = \$6.30
Sales tax is applied only to the final sale price, not the original sticker price.
4
Calculate the final total cost.
$105+$6.30=$111.30\$105 + \$6.30 = \$111.30
Add the sales tax amount to the discounted sale price to find the final amount paid at the register.

Key Concept

Discounts and Sale Prices
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Topics

Discounts and Sale Prices

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