13
QuizMultiple Choice

Budgeting and Being a Smart Consumer(CFA1)

Question 13 • Personal Finance - EL3403

Shona is buying a rug for her room. Store A has the rug for $45 with a 10% discount. Store B has the same rug for $46 and is offering a $10 off coupon. The sales tax is 6% on either purchase. If Shona only has $40 to spend, which store will she purchase the rug from, and how much will she have left over?

Answer
A
Shona can afford the rug in store A. She will have $2.93 left over.
B
Shona can afford the rug in store B. She will have $1.84 left over.
C
Shona can afford the rug in store B. She will have $2.93 left over.
D
Shona can afford the rug in store A. She will have $1.84 left over.

Explanation

At Store A, the 10% discount is $4.50, making the price $40.50 before tax; with 6% tax, the total is $42.93, which is over $40. At Store B, the coupon reduces the price to $36, and 6% tax brings it to $38.16, leaving $40 − $38.16 = $1.84. So Shona can afford the rug at Store B and will have $1.84 left over.

AI-written and checked against the verified answer.

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