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Math  /  Numbers & Operations

Question19) A retailer purchases an item for $40\$ 40 and then adds a 70%70 \% markup. If a customer also has a pay a 6%6 \% sales tax, what is the final price of the item?
Nour answer

Studdy Solution

STEP 1

What is this asking? We need to figure out the total price a customer pays for an item, considering the store's markup and the sales tax. Watch out! Don't forget to calculate the markup *before* applying the sales tax!

STEP 2

1. Calculate the markup amount.
2. Calculate the price after markup.
3. Calculate the sales tax amount.
4. Calculate the final price.

STEP 3

Alright, let's **calculate the markup amount**!
We're told the markup is 70%70\% of the original $40\$40 price.
Remember, "of" means "times" in math, so we multiply!

STEP 4

\(0.70 \cdot \$40 = \$28\) So, the **markup amount** is $28\$28!

STEP 5

Now, let's add this **markup amount** to the **original price** to get the price *after* the markup.

STEP 6

\(\$40 + \$28 = \$68\) The price after the markup is $68\$68!

STEP 7

Time to **calculate the sales tax**!
We have a 6%6\% sales tax on the marked-up price of $68\$68.
Again, we multiply!

STEP 8

\(0.06 \cdot \$68 = \$4.08\) The **sales tax** is $4.08\$4.08!

STEP 9

Finally, we add the **sales tax** to the **price after markup** to find the **final price** the customer pays.

STEP 10

\(\$68 + \$4.08 = \$72.08\) The **final price** is $72.08\$72.08!

STEP 11

The final price of the item is $72.08\$72.08.

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