Question

Find the selling price of this item.
Cost:$29.95
Markup: 20%
Tax: 2%
...
Please explain the process of finding the answer, I kinda know how to figure it out, but I need a reminder :P

Answer 1

If the base price (100% of the price) is $29.95, then a mark up of 20% means you play 120% of the original price (base price+20%), so you would multiply $29.95 by 1.2 to get $35.94. Then you have to add 2% tax, so you multiply everything ($35.94) by 1.02 (price and then 2% added tax) to get a final price of around $36.66 (actual answer is $36.6588, but you don't get to have factions of pennies)