Problema Solution

A local retailer is having a 25% off sale on all of its merchandise. Suppose youre considering purchasing an item that is regularly $115. What will the total cost of the purchase be with a sales tax of 6.25%. Assume that the store charges taxes on the regular price of the item.

Answer provided by our tutors

total cost of the purchase = the new discounted price + 6.25% tax of the regular price


the new discounted price = $115 - 0.25*115 = 115(1 - 0.25) = 115*0.75 = $86.25


6.25% tax of the regular price = 0.0625*115 = $7.1875


total cost of the purchase = $86.25 + $7.1875


total cost of the purchase = $93.4375