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You have decided to budget $100 monthly for clothing out of your net pay. You ne

ID: 3013465 • Letter: Y

Question

You have decided to budget $100 monthly for clothing out of your net pay. You need some new clothes for your new job. You have chosen several items whose total comes to $125 before discount and tax. If there is a 20% discount on all of your items and a 5% tax applied after the discount, will your purchase be under your $100 budget? You do NOT need to write an equation to solve this - just show me your process. Show all of your work using the equation editor and then tell whether or not you are under budget. You have decided to budget $100 monthly for clothing out of your net pay. You need some new clothes for your new job. You have chosen several items whose total comes to $125 before discount and tax. If there is a 20% discount on all of your items and a 5% tax applied after the discount, will your purchase be under your $100 budget? You do NOT need to write an equation to solve this - just show me your process. Show all of your work using the equation editor and then tell whether or not you are under budget.

Explanation / Answer

Dear Student

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As given in the question that actual cost of several items chosen before discount and tax is 125$

Now if 20% Discount is applied on this cost then the amount becomes = 125 - 20%of 125

                                                                                                                 = 125 - 25

= 100$

Now 5% sales tax has to be applied on the discounted amount

=> Total amount to be paid = Actual amount - 20% Discount of Actual price + 5% tax over discounted price

5% of discounted price = 5% of 100 = 5

Discounted price = 100$

Net amount to be paid = 125 - 25 + 5 = 105$

Since 105$ is exceeding the monthly budget which is 100 $ as given in the question Therefore yes I am exceeding budget if I purchase goods of value 125$.

Thank you

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