Question

A $40.00 skateboard is discounted 30%. If sales tax is 5%, what is the amount of tax paid?

Answer 1

$29.40 ........ 40x0.3=12....... 40-12=28...... 28x1.05= $29.40

Answer 2

$1.40

Explanation:

Data provided in the question

Skateboard price = $40

Discounted percentage = 30%

Sales tax rate = 5%

By considering the above information, the amount of tax paid is

For computing the amount of tax paid, first we have to determine the price after considering the given discount percentage which is shown below:

= Skateboard price - Skateboard price × discounted percentage

= $40 - $40 × 30%

= $40 - $12

= $28

Now the amount of tax paid is

= $28 × 5%

= $1.40