Question

Judy Ring purchased a watch with a retail price of $8,000. She still has to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler is shipping the watch, there's an additional $20 shipping charge. The total purchase price of this watch for Judy i

Answer 1

Answer: Total purchase price of this watch is $9300.

Step-by-step explanation:

Since we have given that

Retail price of watch = $8000

Rate of sales tax = 6%

Amount of sales tax becomes

$\dfrac{6}{100}\times 8000\\\\=\ 480$

Rate of excise tax = 10%

Amount of excise tax is given by

$\dfrac{10}{100}\times 8000\\\\=\ 800$

So, Amount of watch after sales tax becomes

$\ 8000+\ 480+\ 800\\\\= 9280$

Amount of additional shipping charge = $20

Amount of watch after additional shipping charge becomes

$\ 9280+20\\\\=\ 9300$

Hence, Total purchase price of this watch is $9300.

Answer 2

The total purchase price of the watch is: $9,300

$8,000 + (0.06 × $8,000) + (0.10 × 8,000) + $20

$8,000 + $480 + $800 + $20