Question

a jeweler buys a ring from jewelry maker for $125. he marks up the price by 135% for sale in his store. what is the selling price of the ring with 7.5% sales tax?

Answer 1

You wouls do 125 times 135% and that would be 168.75 then you would do 125 add 168.75 which would equal 293.75 then you would do 293.75 times 7.5% which equals 22.03 then you would do 22.03 add 293.75 and the answer would be 315.78

Answer 2

Answer with explanation:

Price paid by Jeweler to jewelry maker for a ring=$125

Price that Jeweler wants for the ring

          $=125+125*\frac{135}{100}\\\\=125+168.75\\\\=293.75$$

Sales tax =7.5%

Price of ring if 7.5 % sales tax is included in 135% marked price

      $=293.75 -293.75 *\frac{7.5}{100}\\\\=293.75-22.03125\\\\=271.71875\\\\=271.72$$

Price of ring if 7.5 % sales tax is not included in 135% marked price

      $=293.75 +293.75 *\frac{7.5}{100}\\\\=293.75+22.03125\\\\=315.78125\\\\=315.78$$