Question

You have a 10% off coupon for the paper towels that are 6.99. The tax rate is 8%. Find the discount amount and tax amount

Answer 1

Answer:

The tax amount = $0.5592

The discount amount = $0.755

Step-by-step explanation:

Here, the Marked Price  of the paper towels  = $6.99

Now, the tax on the marked price = 8%

Calculating the tax amount on Marked price, we get:

8% of 7.99   =  $\frac{8}{100} \times 6.99 = 0.5592$

So, the tax amount = $0.5592

Now, the Selling Price =  Marked Price+ Tax

=  $6.99 + $ 0.5592   =  $7.5492

⇒Selling Price  =   $7.5492

Calculating the discount amount on Selling price, we get:

10% of $7.5492   =  $\frac{10}{100} \times 7.5492 = 0.75492$

So, the discount amount on selling price = $0.755