You are in charge of purchasing supplies for a lighting company and need to buy 125 feet of electrical wire. A local supplier sells the wire for $1.25 per foot, plus 5% sales tax. An online company sells the wire for $1.75 per foot. The online company also offers a rebate of 10% for the whole order and charges no additional sales tax. If you choose the better of the two prices, how much will you pay for the 125 feet of wire?
The local supplier’s wire costs 125 × $1.25 = $156.25 before tax. Adding 5% sales tax gives $156.25 × 1.05 = $164.0625, or $164.06. The online price after its 10% rebate is $218.75 × 0.90 = $196.875, so the local supplier is cheaper. You will pay $164.06.
AI-written and checked against the verified answer.