Question

HELP ME WITH THIS QUESTION

Answer 1

Comment
Don't put the tax in until the Merchant actually receives his money. That's what the government looks at in most places. 

So take the discount first.
Problem 1
Step One
Find the discount
Original Price 109.50 
26% discount = (26/100) * 109.50
26% discount = 28.47

Step Two 
Take the discount away from the original selling price.
109.50
-28.47
======
81.03

Step 3
Find the 1% Tax
81.03 * 1/100  = 0.81

Step 4
Add this to the selling price.
81.03 + 0.81 = 81.84

Answer 81.84 <<<<< 

Note:
There are other ways of doing this, but this way is the safest way.