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Andrea works as a cashier in a music store. A customer wants to pay for a CD that is 15% off the regular price of $14.00. The cash register is broken, and Andrea must calculate the price of the CD using only a calculator.
Music Store Problem
a. What is the sale price of the CD? Show or explain how you got your answer.
15% of $14 is $2.10, which is the amount off. $14.00 - $2.10 = $11.90 The price of the CD is $11.90
b. Andrea needs to add 7% sales tax to the sale price of the CD. What should Andrea charge the customer for the CD, including tax? Show or explain how you got your answer.
7% of $11.90 is .83, which is the amount of tax. $11.90 + .83 = $12.73 Andrea should charge the customer $12.73 including tax.
c. The customer told Andrea that she could save time by just taking 8% off the regular price of the CD, because 15% - 7% is 8%. Is the customer right? Explain your reasoning.
The customer is not right because the discount is 15% off, not 8% off. The 7% is the tax and is added to whatever the price after the discount is. If Andrea did it like the customer said, then the customer would pay $13.80 instead of $12.73.