Question

Joanna buys a table and 2 chairs. She receives a 25% discount for being a preferred customer and then pays 6% sales tax on the discounted purchase price. If the table costs $250 and each chair costs $100, what is the total purchase price?

Answer 1

The total purchase price is $ 357.75

Solution:

Joanna buys a table and 2 chairs

Cost of table = $ 250

Cost of 1 chair = $ 100

Therefore, cost of a table and 2 chairs = 250 + 2(100) = 450

Thus, cost price = $ 450

She receives a 25% discount for being a preferred customer

Therefore, discount = 25 % of cost price

$discount = 25 \% \times 450\\\\discount = \frac{25}{100} \times 450\\\\discount = 0.25 \times 450 = 112.5$

Thus, amount after discount = cost price - discount

amount after discount = 450 - 112.5 = 337.5

Thus, amount after discount is $ 337.5

Then pays 6% sales tax on the discounted purchase price

Sales tax = 6 % of 337.5

$sales\ tax = 6 \% \times 337.5\\\\sales\ tax = \frac{6}{100} \times 337.5\\\\sales\ tax = 20.25$

Thus, total purchase price is given as:

total purchase price = Amount after discount + sales tax

total purchase price = 337.5 + 20.25 = 357.75

Thus total purchase price is $ 357.75