Question

Your company recently made a purchase of 25 identical tables. The purchase price after adding 5% sales tax was $1,706.25. You later realize that you only needed 20 tables. Please explain how this is done

Answer 1

You'll be paying less for the tables because you're ordering fewer tables: 20 instead of 25.

Find the unit, after-tax price of a table:

$1,706.25

--------------- = $68.25 per table

25

Then, the total that must be paid to purchase 20 tables is

20($68.25/table) = $1,365