Question

shirts are 40% off. The original price of one shirt is $40. What is the total cost in dollars, of a shirt, at the sale price, including a 5% sales tax?

Answer 1

$\begin{gathered} \text{ Original price = \ 40} \\ \text{Amount off = 40\% of \ 40} \\ \text{Amount off = }\frac{40}{100}\text{ x \ 40 = \ 16} \\ \text{New price = Origina price - Amount off} \\ \text{New price = \ 40 - \ 16 = \ 24} \end{gathered}$

Sales tax = 5%

Note that the sales tax is calculated on the New price and not on the original price

$\text{ Sales tax = }\frac{5}{100}\text{ x \ 24 = \ 1.2}$

Total cost = New price + sales tax

Total cost = $24 + $1.2 = $25.2

The answer is $25.2