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SHOPPING, SALES PRICES & TAXES


Here are examples of percent problems that deal with buying items.

EXAMPLE 1:
A Tommy Hilfiger sweater costs $79.99 and there is a sales tag attached to the sweater saying that it is 25% off. In addition to that, there is a special in the store today. The special says that the store will pay the tax (15%) for any item(s) purchased today. What percent is the buyer saving from the original price of $79.99? In other words, what is the percent decrease in price?

The sweater would normally cost $79.99 plus tax, which is $79.99 + ($79.99 x 15%) = $79.99 + $12.00 = $91.99. On sale, the sweater costs $79.99 – (25% x original price) + no tax = $79.99 – ($79.99 x 25%) + 0 = $79.99 – $20.00 = $59.99.

By buying the sweater on this particular day, you would save $32 ($91.99 – $59.99). This would be a percent decrease of 34.8% (32 ÷ 91.99 x 100%).

This is a good type of question to show that you cannot simply add the two given percentages (that is, 40% = 25% + 15%) to get the results; if that had been the case, then the sweater would cost $47.99 ($79.99 ´ 40%).

EXAMPLE 2:
George wants to buy a pair of Ikeda jeans. Both Jeans Experts and Bootlegger sell the jeans that he wants. The jeans are ticketed at both stores as costing $64.99, however at both stores, the jeans are on sale. Bootlegger has the jeans for 15% off the ticketed price while Jeans Experts is going to pay the sales tax of 15%. At which store should George buy his jeans?

At Jeans Experts, you would pay $64.99 (you would save $9.75, because $64.99 x 15% = $9.75). At Bootlegger, you would pay $63.53 (you would save $11.21; $64.99 + $9.75 [tax]) x 15% = $11.21).

Although it may appear that the jeans should be the same price at both stores, that is not the case. George will get his jeans for a better price at Bootlegger. Be very careful - things are not always as they appear.

EXAMPLE 3:
Marjorie is at a store and the sign says 30% off. The dress she wants is $79.99 at the regular price. What one calculation can she do to find the sale price?

If a price is reduced by 30%, the actual price is 70% of the original cost, so she can calculate $79.99 x 70% = $55.99. This is simpler than calculating 30% and then subtracting from the full price.


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