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Difficulty: MediumPercentage Change, Markups, and Discounts

A customer buys a set of tires with an original total price of $600\$600. The store offers a 20%20\% discount on the tires. After the discount is applied, a 5%5\% sales tax is added to the discounted price. What is the final total amount the customer pays?

  1. A
    $126\$126
  2. B
    $510\$510
  3. $504\$504Answer
  4. D
    $609\$609

Answer

The correct answer is $504\$504.
The correct final amount is found by first subtracting the discount from the original price, then adding the tax to the new subtotal. A 20%20\% discount on $600\$600 saves $120\$120, making the sale price $480\$480. A 5%5\% tax on $480\$480 adds $24\$24, resulting in a final total of $504\$504.

Step-by-Step Solution

1
Calculate the amount of the discount.
The discount is $120\$120.
The discount is 20%20\% of the original $600\$600 price (0.20×600=1200.20 \times 600 = 120).
2
Calculate the discounted sale price.
The sale price is $480\$480.
Subtract the discount amount from the original price (600−120=480600 - 120 = 480).
3
Calculate the amount of the sales tax.
The sales tax is $24\$24.
The tax is 5%5\% of the discounted sale price (0.05×480=240.05 \times 480 = 24).
4
Calculate the final total amount.
The final total is $504\$504.
Add the sales tax to the discounted sale price (480+24=504480 + 24 = 504).

Key Concept

Calculating successive percentages involving discounts and taxes.
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Topics

Percentage Change, Markups, and Discounts

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