Basic HTML Version
© 2014 Pacific Crest
355
Step
Explanation
4.
Identify the percents to be
added or subtracted
Discounts (or sales) are subtracted off, while sales taxes are added
on to the price of an item
Discount of 60% of the original price followed by a discount of 25% on the result of the
first discounted amount. Then the sales tax of 5% is added on that amount.
5.
Calculate each percent
and add or subtract as
appropriate
Multiply the percent (written as a decimal) by the price, then add
that amount to the price (markups or taxes) or subtract that amount
from the price (discounts or sales).
Original price:
$20.00
Discount amount:
60% of (
original price
)
0.60 × $20.00 =
$12.00
Sale price:
(
original price
) – (
discount amount
)
$20.00 – $12.00 =
$8.00
Coupon discount:
25% of (
sale price
)
0.25 × $8.00 =
$2.00
Sale price with coupon: (
sale price
) – (
coupon discount
)
$8.00 – $2.00 =
$6.00
Tax amount:
5% of (
sale price with coupon
)
0.05 × $6.00 =
$0.30
Final cost:
(
sale price with coupon
) + (
tax amount
)
$6.00 + $0.30 =
$6.30
6.
Validate
Make the calculation in reverse.
$6.30 = 1.05 of the taxable amount which gives the taxable amount as $6:
$6.30 = 1.05
x
$6 =
x
$6 = 0.75 of the first discounted amount which gives $8:
$6 = 0.75
x
$8 =
x
$8 = 0.40 of the original amount which gives $20 as the original amount:
$8 = 0.40
x
$20 =
x
YOUR
TURN!
Scenario:
Sam owns a shoe store. He purchased some shoes from his supplier for $60
and marked them up 33% before putting them on the shelf to be sold. To
appeal to those customers looking for a bargain, he put up a sign advertising
20% off these shoes. How much will the customer pay for the shoes if his state
has a 6% sales tax rate?
8.1 Consumer Finance