Discounts and Tax Together

Show your work for each problem.

1.
When a store applies both a discount and sales tax, which should be calculated first?
1. a)The discount
2. b)Both at the same time
3. c)The tax
4. d)It doesn't matter
Answer: The discount
The discount must be calculated first. Stores are legally required to charge tax only on the amount you actually pay, which is the discounted price.
2.
A 100 dollar item is 20% off. What is the price after the discount (before tax)?
Answer: 80
dollars discount. dollars after discount.
3.
What is the multiplier for a 30% discount?
Answer: 0.70
A 30% discount means you pay of the original price. As a decimal: .
4.
What is the tax multiplier for an 8% sales tax?
1. a)0.92
2. b)1.08
3. c)0.08
4. d)1.80
Answer: 1.08
For tax, you pay of the price. As a multiplier: .
5.
A shirt costs 50 dollars. It's 10% off with 5% tax. Find the final price.
Answer: 47.25
1. What is the discount multiplier for 10% off? 0.90
2. What is the price after the 10% discount? 45
3. What is the tax multiplier for 5% tax? 1.05
4. What is the final price after adding 5% tax? 47.25
6.
A 200 dollar jacket is 25% off with 8% tax. What is the final price?
Answer: 162
dollars after discount. dollars final price.
7.
A laptop costs 800 dollars. It's 15% off with 7% tax. Calculate the final price using multipliers.
Answer: 727.60
1. What is the discount multiplier for 15% off? 0.85
2. What is the tax multiplier for 7% tax? 1.07
3. Combine the multipliers (0.85 times 1.07) 0.9095
4. Multiply 800 by the combined multiplier 727.60
8.
A 120 dollar item is 40% off. Sales tax is 10%. What is the final price?
1. a)84.00 dollars
2. b)132.00 dollars
3. c)79.20 dollars
4. d)72.00 dollars
Answer: 79.20 dollars
dollars after discount. dollars final price.
9.
Compare two stores selling the same headphones. Store A: 100 dollars, 30% off, 6% tax. Store B: 75 dollars, no discount, 6% tax. Which is cheaper and by how much?
Answer: A is cheaper by 5.30
1. What is Store A's price after 30% discount? 70
2. What is Store A's final price with 6% tax? 74.20
3. What is Store B's final price with 6% tax? 79.50
4. How much cheaper is Store A? 5.30
10.
What combined multiplier would you use for 20% off plus 9% tax?
Answer: 0.872
Discount multiplier: . Tax multiplier: . Combined: .
11.
You have 150 dollars. A gaming console costs 180 dollars but is 25% off. With 8% tax, can you afford it? If so, how much change will you have?
Answer: 4.20
1. What is the price after 25% discount? 135
2. What is the final price with 8% tax? 145.80
3. Is 145.80 less than 150? yes
4. How much change will you have? 4.20
12.
A store incorrectly calculated tax first, then discount. If the original price is 200 dollars, discount is 20%, and tax is 10%, what is the difference from the correct calculation?
1. a)0 dollars (same result)
2. b)4 dollars more
3. c)4 dollars less
4. d)16 dollars more
Answer: 0 dollars (same result)
Correct: . Wrong order: . Same result! Multiplication is commutative, but the legal standard is discount first.
13.
An item's final price after 35% off and 7% tax is 93.17 dollars. What was the original price?
Answer: 134
Combined multiplier: . Original price: dollars.
14.
A store offers two successive discounts: first 20% off, then an additional 10% off the sale price. If tax is 5%, what is the final price of a 250 dollar item?
Answer: 189
1. What is the price after the first 20% discount? 200
2. What is the price after the additional 10% off? 180
3. What is the final price with 5% tax? 189
15.
Which deal gives the lowest final price for a 300 dollar item? (All with 6% tax)
1. a)35% off
2. b)25% off plus extra 15% at checkout
3. c)Buy for 200 dollars (no discount)
4. d)40% off but 12% tax instead
Answer: 25% off plus extra 15% at checkout
A: . B: . C: . D: . Option C (25% + 15% off) gives the lowest price at 202.73 dollars.