Question

Samuel has a coupon for 25% off the regular price of one item at the toy store. He buys a dirt bike that has a regular price of $419.99. The Kentucky tax rate is 6%, what is the price of the dirt bike after the coupon is used. Show your work!

Answer 1

Hi there! So, Samuel has a coupon for 25% off and the tax rate where he lives is 6%. To find the total of the bike, first thing we need to do is multiply the price of the bike by the amount still needed to be paid. You take 25% off of the price of the bike, but you still need to pay 75% of the original price. 419.99 * 75% (0.75) is 314.9925 or 314.99 when rounded to the nearest hundredth. Now to find the price with tax, multiply the sale price by (1 + r). In other words, add 1 to the tax rate in decimal form, in this case, 1.06, because 6% is 0.06. 314.99 * 1.06 is 333.8894 or 333.89 when rounded to the nearest hundredth. The new price of the dirt bike is $333.89.