Question

Brand X Pizza is having a special coupon offer. If you buy two large pizzas, you get $2.00 off the price. A large pizza normally costs $10.50. There is a 7.5%sales tax that must be added to the total price of the order. If you are using the coupon, what will be the total price of the pizzas with all discounts and sales tax? Round your answer to the nearest cent.

Answer 1

Very handy question to know the answer to. I know of no place on the planet that does not have a tax of some sort.

The tax only applies when money changes hands. It does not apply to any discounts

So if you take the deal, the cost is

Cost of 2 pizzas = normal price - the discount.

Cost of 2 pizzas = 2*10.50 - 2.00

Cost of 2 pizzas = 21 - 2

Cost of 2 pizzas = 19.00 dollars.

Not you add on the sales tax. You can do this one of two ways, the long way or the short way.

Long way

Find the sales tax

Tax = % * cost

Tax = (7.5/100) * 19

Tax = 1.425 don't round yet.

Total Cost = purchase + tax

Total Cost = 19.00 + 1.425 = 20.425 Now round. This is a real problem. It depends on what you have been told to do about rounding when 5 is the last digit. I round up. So my answer would be 20.43 <<<<< Answer.

Short Way

Cost = (Price - discount)*(1 + %/100)

Cost = (21 - 2)*(1+ 7.5/100)

Cost = 19 * (1.075)

Cost = 20.425 = 20.43