Question

The new Apple Watch series 7 cost $799. There is an additional 7% sales tax rate . If Oscar has a total of 850.00 to spend, will he be able to purchase the new Apple Watch Series 7? Explain.

Answer 1

The total available cash with Oscar will not be able to purchase the new Apple Watch Series 7 because the total cost of the watch is greater than available cash.

The given parameters;

• cost of new Apple Watch Series 7, = $799
• sales tax, = 7%
• Oscars available cash = $850

The total cost of the new Apple Watch Series 7 is calculated as follows;

Total cost = 0.07(799)  +  799

Total cost = $854.93

Thus, we can conclude that the total available cash with Oscar will not be able to purchase the new Apple Watch Series 7 because the total cost of the watch is greater than available cash.

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