If a product costs $120 and is discounted by 25%, the sale price is $90. If an 8% tax is added to the sale price, what is the total price?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the ATandT Information Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

If a product costs $120 and is discounted by 25%, the sale price is $90. If an 8% tax is added to the sale price, what is the total price?

Explanation:
Discounts are applied first, and tax is added to the discounted price. Compute the discount: 25% of $120 is $30, so the sale price becomes $120 − $30 = $90. Now apply the 8% tax to that sale price: 0.08 × $90 = $7.20. Total price = $90 + $7.20 = $97.20. So the total price is $97.20. (If tax were computed on the discount alone or on the original price, the result would be different, but tax is applied to the discounted sale price.)

Discounts are applied first, and tax is added to the discounted price.

Compute the discount: 25% of $120 is $30, so the sale price becomes $120 − $30 = $90.

Now apply the 8% tax to that sale price: 0.08 × $90 = $7.20.

Total price = $90 + $7.20 = $97.20.

So the total price is $97.20. (If tax were computed on the discount alone or on the original price, the result would be different, but tax is applied to the discounted sale price.)

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy