Question

Stephen purchased a guitar, which was originally priced at $80 but discounted at 25%. He also had to pay 5% sales tax. What amount did Stephen pay to purchase the guitar?

Answer 1

Discounted by 25% means he paid 75% of the original price:

80 x 0.75 = $60

Now multiply the sale price by 1 + tax rate:

60 x 1.05 = 63

He paid $63 total.