Question

A diamond retailer buys a ring from his supplier for $875. He marks up the price 110% to sell in his store. What is the selling price of the diamond with a 6% sales tax?

Answer 1

It costs $1020.25

Explanation:

We do 875 times 1.1 to find the markup. This comes out to 962.5.

Then we do 962.5 times 1.06 to find the sales tax. This comes out to 1020.25 which is the final answer.