Monetary Percentage
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PSAT Math › Monetary Percentage
Company 
Explanation
The sale price is 85% less than the original which is the same as 15% of the original 
A certain state charges sales tax at a rate of 8.75% per dollar spent. John spends $127.50 total, including tax, on clothes. What was the total price of the clothing before tax was added?
Explanation
Since we know the total price with tax, we simply need to work backwards to remove the tax from the total price and find the price of the clothing itself. This can be done as follows:
Clothing Price or C = Total price / 1 + tax rate
C = $127.50/(1 + 0.0875) = $117.24
Company
Explanation
The sale price is 85% less than the original which is the same as 15% of the original
A certain state charges sales tax at a rate of 8.75% per dollar spent. John spends $127.50 total, including tax, on clothes. What was the total price of the clothing before tax was added?
Explanation
Since we know the total price with tax, we simply need to work backwards to remove the tax from the total price and find the price of the clothing itself. This can be done as follows:
Clothing Price or C = Total price / 1 + tax rate
C = $127.50/(1 + 0.0875) = $117.24
A stove is regularly priced for $300. What is the difference one would pay when buying it at a 20% discount rather than a 10% discount, with an additional 10% discount off the sale price?
$3
$30
$20
$5
Explanation
Buying the stove at a 20% discount would be $240. If one buys it at a sale of 10%, with another 10% off then the price would be $243, so the difference is $3
20% of 300 is 0.2 * 300 = 60 → 300 – 60 = 240
10% of 300 is 0.1 * 300 = 30 → 300 – 30 = 270
10% of 270 is 0.1 * 270 = 27 → 270 – 27 = 243
243 – 240 = 3
Each wooden chair that a carpenter makes requires $20 worth of supplies. He then sells the chairs for $50 each. The carpenter recently discovered a new supplier that would allow him to spend 25% less on supplies. If he doesn't change his selling price, by what percent could the carpenter increase his profit by using the new supplier?
Explanation
Using $20 worth of supplies and selling the chairs for $50 each, the carpenter is originally making a profit of $30 per chair.
The new supplier would reduce costs by 25% or 1/4. One-fourth of $20 is $5, so the new supplier would be $5 less, or $15.
If the selling price is the same ($50), then the carpenter would now make a profit of $35 per chair, a change of $5.
To calculate percent increase, divide the actual change in profit by the original profit amount, and multiply the result by 100%:
(Actual Change ÷ Original Amount) * 100% = 5/30 * 100% = 500%/30 = 16.7%
A stove is regularly priced for $300. What is the difference one would pay when buying it at a 20% discount rather than a 10% discount, with an additional 10% discount off the sale price?
$3
$30
$20
$5
Explanation
Buying the stove at a 20% discount would be $240. If one buys it at a sale of 10%, with another 10% off then the price would be $243, so the difference is $3
20% of 300 is 0.2 * 300 = 60 → 300 – 60 = 240
10% of 300 is 0.1 * 300 = 30 → 300 – 30 = 270
10% of 270 is 0.1 * 270 = 27 → 270 – 27 = 243
243 – 240 = 3
Lisa just bought a desktop computer. The computer cost $1500, the keyboard cost $100, and the mouse cost $25. If the local sales tax is 7%, what was the total cost of her purchases?
Explanation
Total Tax = 
Total Cost = Computer + Keyboard + Mouse + Tax =
Each wooden chair that a carpenter makes requires $20 worth of supplies. He then sells the chairs for $50 each. The carpenter recently discovered a new supplier that would allow him to spend 25% less on supplies. If he doesn't change his selling price, by what percent could the carpenter increase his profit by using the new supplier?
Explanation
Using $20 worth of supplies and selling the chairs for $50 each, the carpenter is originally making a profit of $30 per chair.
The new supplier would reduce costs by 25% or 1/4. One-fourth of $20 is $5, so the new supplier would be $5 less, or $15.
If the selling price is the same ($50), then the carpenter would now make a profit of $35 per chair, a change of $5.
To calculate percent increase, divide the actual change in profit by the original profit amount, and multiply the result by 100%:
(Actual Change ÷ Original Amount) * 100% = 5/30 * 100% = 500%/30 = 16.7%
Lisa just bought a desktop computer. The computer cost $1500, the keyboard cost $100, and the mouse cost $25. If the local sales tax is 7%, what was the total cost of her purchases?
Explanation
Total Tax =
Total Cost = Computer + Keyboard + Mouse + Tax =