Henrietta has $120 to buy a new bicycle. She finds the bike that she wants to buy on sale for 20% off the regular price of $150. If there is 6% sales tax, which of the following best describes the amount of money Henrietta has with regards to buying the bike.
Answer
A
Henrietta has enough before the tax, but not enough after the tax.
B
Henrietta has enough money even after the tax.
C
Henrietta does not have enough money even before the tax.
D
There is not enough information given.
Explanation
A 20% discount on $150 is $30, so the sale price is $150 − $30 = $120. The 6% sales tax is $7.20, making the total $127.20. Henrietta has enough for the bike before tax, but not enough to pay the total after tax.
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