Examkin

Question

Difficulty: EasyDecimal Operations and Currency Word Problems

A soldier buys a pair of tactical boots priced at $50.00\$50.00 at a local surplus store. He uses a coupon for $10.00\$10.00 off his purchase. After the discount is subtracted, a 6%6\% sales tax is applied to the remaining balance. What is the final total cost of the boots?

  1. A
    $40.24\$40.24
  2. B
    $43.00\$43.00
  3. $42.40\$42.40Answer
  4. D
    $64.00\$64.00

Answer

$42.40\$42.40
The correct final cost is found by first subtracting the $10.00\$10.00 discount from the $50.00\$50.00 original price, resulting in a $40.00\$40.00 subtotal. The 6%6\% sales tax is then calculated on this new subtotal ($40.00×0.06=$2.40\$40.00 \times 0.06 = \$2.40). Finally, adding the $2.40\$2.40 tax to the $40.00\$40.00 subtotal gives the correct total of $42.40\$42.40.

Step-by-Step Solution

1
Subtract the coupon discount from the original price to find the subtotal.
$50.00−$10.00=$40.00\$50.00 - \$10.00 = \$40.00
The discount must be applied to the original price before calculating the sales tax.
2
Calculate the 6%6\% sales tax on the new subtotal.
$40.00×0.06=$2.40\$40.00 \times 0.06 = \$2.40
The 6%6\% tax rate is converted to the decimal 0.060.06 and multiplied by the discounted price.
3
Add the sales tax to the subtotal to find the final cost.
$40.00+$2.40=$42.40\$40.00 + \$2.40 = \$42.40
The final total is the sum of the discounted price and the applicable sales tax.

Key Concept

Calculating sequential discounts and taxes using decimal multiplication
Rate this question

Topics

Decimal Operations and Currency Word Problems

More questions from this topic