A book store sells a textbook that is regularly priced for $150 – Free 86A

A book store sells a textbook that is regularly priced for $150. If the textbook is on sale with 12% off, and there is a sales tax of 8.25% added to the price of the textbook, what is the final price of the textbook, including sales tax? Round your answer to the nearest cent.

Answer

Calculating Final Price After Discount and Sales Tax on a Textbook

Understanding real-world percentage applications like discounts and taxes helps in everyday financial decision-making. Let’s break down how to calculate the final amount payable after a discount is applied to a regular price and a sales tax is added afterward.

📘 Step 1: Identify the Given Values

• Original Price (P) = $150.00
• Discount Rate = 12%
• Sales Tax Rate = 8.25%

🔻 Step 2: Calculate the Discount Amount

We begin by finding 12% of the original price:

Discount = 12% of 150 = (12 / 100) × 150 = $18.00

💲 Step 3: Subtract Discount to Get Sale Price

Subtract the discount from the original price:

Sale Price = 150 – 18 = $132.00

💰 Step 4: Calculate Sales Tax on the Sale Price

Now we apply 8.25% sales tax to the discounted price:

Tax = 8.25% of 132 = (8.25 / 100) × 132 = $10.89

🧾 Step 5: Calculate Final Price

To find the total price the customer pays:

Final Price = 132 + 10.89 = $142.89

✅ Final Answer:

The final price of the textbook, after a 12% discount and 8.25% sales tax, is $142.89.

📚 Real-Life Tip:

Always remember: Apply discounts before calculating tax. Many people mistakenly add tax first, which leads to paying more than necessary!