Question

Petra wants to buy a skateboard. The skateboard deck usually costs $37.50, but it is on sale for 20% off.

Part A

If the sales tax rate is 5.2%, how much will Petra pay for the skateboard deck in all?
$30.00
$31.56
$31.95
$39.45

Part B

If the selling price of $37.50 represents a 20% markup, will the store still make a profit after the 20% markdown? Explain.

Yes, they added 20% and then subtracted 20%.


No, the store will lose $1.25.


Yes, the store will earn $1.25.


No, the store will lose 40% of the cost.

Answer 1

Part A:

The price of the skateboard deck after the 20% discount is:

Price after discount = 0.8 * $37.50 = $30.00

The sales tax rate is 5.2%, so the total price Petra will pay is:

Total price = Price after discount + (Sales tax rate * Price after discount)

Total price = $30.00 + (0.052 * $30.00) = $31.56

Therefore, Petra will pay $31.56 for the skateboard deck in all.

The answer is B. $31.56

Part B:

If the selling price of $37.50 represents a 20% markup, then the original price of the skateboard deck is:

Original price = Selling price / (1 + Markup rate)

Original price = $37.50 / (1 + 0.20) = $31.25

The price after the 20% discount is $30.00, which is less than the original price of $31.25. Therefore, the store will still make a profit after the 20% markdown.

The answer is Yes, the store will earn $1.25.