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Difficulty: MediumDiscounts and Sale Prices

A carpenter is purchasing a commercial-grade table saw. The original price of the table saw is $850\$850. The store offers a 20%20\% discount on all power tools. After the discount is applied, a 5%5\% sales tax is added to the purchase price. What is the final total amount the carpenter pays for the table saw?

  1. A
    $722.50\$722.50
  2. B
    $871.50\$871.50
  3. $714.00\$714.00Answer
  4. D
    $1,020.00\$1,020.00

Answer

$714.00\$714.00
To find the final price, first determine the sale price by taking 20%20\% off the original $850\$850. Since 20%20\% of $850\$850 is $170\$170, the discounted price is $680\$680. Next, apply the 5%5\% sales tax to the new sale price of $680\$680. The tax is 0.05×$680=$340.05 \times \$680 = \$34. Adding the tax to the sale price gives the final total of $714.00\$714.00.

Step-by-Step Solution

1
Calculate the discount amount.
$170\$170
The discount is 20%20\% of the original price: 0.20×$850=$1700.20 \times \$850 = \$170.
2
Determine the discounted sale price.
$680\$680
Subtract the discount amount from the original price: $850−$170=$680\$850 - \$170 = \$680.
3
Calculate the sales tax amount on the sale price.
$34\$34
The tax is 5%5\% of the discounted price: 0.05×$680=$340.05 \times \$680 = \$34.
4
Calculate the final total amount.
$714.00\$714.00
Add the sales tax to the sale price: $680+$34=$714\$680 + \$34 = \$714.

Key Concept

Discounts and Sale Prices
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Topics

Discounts and Sale Prices

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