Question

1. At the hardware store, you purchased a box of nails originally worth $17.  You had a coupon that took off 20% from the nails.  Sales tax is 6%.  What is the total cost for the nails?  

2. Suppose we are at a restaurant and have ordered $29.31 worth of food and $9.72 worth of beverages.  The sales tax rate is 6% and we wish to leave a 20% tip.  How much is the total we will pay for this meal including tip?  

Answer 1

1.) You would multiply $17 by 20% to get the discounted price which would be $3.40. Next, you would add $3.40 and 6% to get $3.60 which would be the total cost of the nails.
2.) You would add $29.31 and $9.72 to get $39.03. Next, you would need add the 6% tax so it would become $41.73 and then, add the 20% tip to get the total cost of the food which would be $49.64.
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Answer 2

The total cost of the nails is $14.42.

The total amount that would be paid for the meal is  $49.65.

The total cost of the box of nails is reduced by the coupon and it is increased by the sales tax.

Cost of the box of nails after the discount = (100 - 20)% x $17

80% x $17

0.8 x $17 = $13.60

Cost of the box of nails after the sales tax is applied = (100 + 6)% x $13.60

106% x $13.60

= 1.06 x $13.60 = $14.42

The total amount of the meal is the sum of the total cost of food, taxes and tips.

Total cost of the food =  $29.31 + $9.72 = $39.03

Sales tax = (100 + 6)% x $39.03

106% x $39.03

= 1.06 x $39.03 = $41.37

Cost after the tip is paid = (100 + 20)% x $41.37

120% x $41.37

1.20 x $41.37 = $49.65

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