Question

A suit costs $95. Barry has a discount coupon for 10% off and the city has a 4.5% sales tax. What is the final cost of the suit?

Answer 1

Barry would pay `$89.35` for the suit.

Explanation:

If Barry Pays full price for the suit, that would be

`1*(95) = $95`

If he has a 10% discount (0.10) on the suit, that would be

`(1 - 0.10)*(95) =`

`(0.90) * (95) = $85.50`

Now if there is a tax of 4.5% tax rate (0.045) on the sale, that would be

`(1 - 0.045)*(85.50) =`

`(1.045)*(85.50) = $89.35`

or

Take the price of the suit and multiply by the tax rate of 45% (0.045)

`$85.50 * (0.045) = $3.85`

Then add the tax to the discounted price

`$85.50 + $3.85 = $89.35`