Question 1 • [PERFIN] Personal Finance, Sem 2 (26-27)
Twila decides to purchase several party trays for her holiday party. She sees that a local store has relish trays for $18.95, cheese and cracker trays for $23.99, and cookie trays for $25.49. The store also has a coupon in its flyer for $5 off any purchase of $50 or more on party trays. Twila orders 1 relish, 1 cheese and cracker, and 2 cookie trays. At this store, discount coupons are applied after tax is calculated, so a sales tax of 8% was added to Twila’s purchase, and then coupon amount was deducted. If Twila was charged $96.43, determine if she paid the correct amount.
Answer
A
Twila paid the correct amount for her purchase.
B
Twila paid $4.00 too little for her purchase.
C
Twila paid $0.40 too much for her purchase.
D
Twila paid $2.51 too much for her purchase.
Explanation
The tray prices total $18.95 + $23.99 + 2($25.49) = $93.92, which qualifies for the $5 coupon. The 8% tax is $93.92 × 0.08 = $7.5136, or $7.51 rounded to the nearest cent. Adding tax and then subtracting the coupon gives $93.92 + $7.51 − $5 = $96.43, so Twila paid the correct amount.
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