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Example Question #11 : Sales Tax
Todd is buying a laptop that is discounted by 20%. Included in the amount he pays is a 7% sales tax on the discounted price. If the original price of the laptop is $995 (before the discount) what is the total amount that Todd pays, rounded to the nearest cent?
Possible Answers:
Correct answer:
Explanation:
If a $995 computer is discounted by 20%, that means its new price is 80% of its original price.
We can find the new price by multiplying $995 by .8, which gives us $796.
If Todd must also pay a 7% sales on the discounted price, we can find his total amount by multiplying $796 by 1.07, which gives us $851.72.
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