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AssignmentMultiple Choice

Markups and Markdowns

Question 1 • DAEP - Math 7 A (20 DAY TERM)

Matt is purchasing a new tablet computer at a 20% markdown. After the discount is taken, the tablet is subject to a 6% state sales tax. How would you find the total amount Matt must pay after the markdown and tax?

Answer
A
Multiply the original price by 0.86.
B
First find the 20% markdown price and the tax on the original price, and then add the new price to the tax.
C
Find the tax, and then take 80% off the tax and the original price.
D
First find the 20% markdown price and subtract it from the original price. Then find 6% of the discounted price to get the tax. The tax plus the discounted price is the final price.

Explanation

First subtract the 20% markdown from the original price, leaving 80% of the original price. Then calculate 6% sales tax on that discounted price and add the tax to the discounted price. This correctly applies the tax after the markdown; choice A’s multiplier of 0.86 does not account for that order.

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