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You purchase an item to sell in your store. The item costs you $6.45. You mark the item up 20%, but later run the item on sale at 5% off the marked price. If your customer must pay 6% sales tax, what will be the total amount paid by the customer for the item?

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metchelle
So here is the answer. Given that the item originally costs $6.45 and marked it up to 20%, the new price would be $7.74, because 20% of 6.45 is 1.29. Now that it is 5% off, the new price would be $7.353. Now that it has an additional sales tax of 6%, the total amount would be $7.79 or $7.80. Hope this answers your question. Have a great day!

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