Question

An item that costs $50.00 is marked 20% off. Sales tax for the item is 8%. What is the final price, including tax? Show your work.

a. solve the problem with the discount applied before the sales tax.
b. solve the problem with the discount applied after the sales tax.
c. compare your answers in parts (a) and (b). Explain

Answer 1

a) 40 dollars

b) 43.20 dollars

c) In Part A the instructions tell you to find the 20% in the 50 dollars But in part B it tells you to solve the problem with the discount applied after the sales tax.

Explanation:

Answer 2

$40 ; $43.20

Explanation:

a) 50 * (1 - .20) = 50 * .8 = 40

b) 50 * (1 - .20) * (1 + .08) = 43.20

c) The sales tax increases the price from a by 8%