Steply

A jacket costs $80. It is 25% off, then 8% sales tax is added. What…

Step by step, with the reason for every step · Percents and money · Foundations

Step by step

The question

Question: A jacket costs $80.

It is 25% off, then 8% sales tax is added.

What is the final price?

1 Find the discount

Percent means out of 100.

So 25% is 25 divided by 100: 0.25.

The point moves 2 places to the left.

25% = 25 ÷ 100 = 0.25

The discount is 25% of $80.

"Of" means times: 0.25 times $80.

That is $20.

discount = 0.25 × $80 = $20

To multiply decimals: first 25 times 80, as whole numbers.

That is 2000.

Then count the decimal places: 2.

So it is 20.00.

25 × 80 = 2000
2 decimal places: 20.00

Careful!

We can't just take 8% from 25%.

The tax is on the sale price, not on $80.

Careful: not 25% − 8% = 17% off: $66.40 ✗

2 Take it off

A discount comes off the price.

$80 minus $20 is $60.

sale price = $80 − $20 = $60

3 Find the tax

Percent means out of 100.

So 8% is 8 divided by 100: 0.08.

The point moves 2 places to the left.

8% = 8 ÷ 100 = 0.08

The tax is 8% of $60.

"Of" means times: 0.08 times $60.

That is $4.80.

tax = 0.08 × $60 = $4.80

To multiply decimals: first 8 times 60, as whole numbers.

That is 480.

Then count the decimal places: 2.

So it is 4.80.

8 × 60 = 480
2 decimal places: 4.80

4 Add it on

The tax is added to the price.

$60 plus $4.80 is $64.80.

total = $60 + $4.80 = $64.80

So the final price is $64.80.

5 Check

Let's check another way: we pay 100% minus 25%: 75% of the price.

0.75 times $80 is $60.

100% − 25% = 75%: 0.75 × $80 = $60

Then: we pay 100% plus 8%: 108% of the price.

1.08 times $60 is $64.80.

The same.

So the answer is right!

100% + 8% = 108%: 1.08 × $60 = $64.80

Let's look back.

First: find the discount.

Then: take it off.

Then: find the tax.

Then: add it on.

Last: check.

Answer
total = $60 + $4.80 = $64.80

Your turn

Try this one yourself, then check:

Show the answer
final price: $65.40

More from Percents and money

The whole lesson: Percents and money →