Question

Find the tax on a dinette set with a cash price of $200 that has been reduced by 20% if the tax rate is 6.5%.

2.60
10.40
11.70
13.00

Answer 1

$200 - 20% savings equals $160 total price
Tax is 6.5%

160X.065 = $10.40 for tax

Answer 2

The correct option is B.

Explanation:

The initial cash price is $200.

The cash price reduced by 20%.

20% of $200 is

`200* (20)/(100)=40`

The cash reduced by $40.

The new cash price is

`\$200-\$40=\$160`

The tax rate is 6.5%.

6.5% of remaining cash is

`160* (6.5)/(100)=10.40`

Therefore option B is correct.