Shana wants to buy a new bicycle that has a retail price of $259.99. She knows that it will be on sale next week for 30% off the retail price. If the tax rate is 7%, find the total amount, to the nearest cent, that she will save by waiting until next week.

Question

mertsj · Answer

If she buys it now:  1.07(259.99)=278.19
Next week:  .70(259.99)+.07(.70)(259.99)=.7(259.99)+.049(259.99)=194.73
She saves 278.19-194.73

anonymous · Answer

How did you know that this was your first step?  1.07(259.99)=278.19 where did the 1.07 come from?

anonymous · Answer

Because the bike is 30% off, you're really only paying 70% of the $259.99. 70% = .7 so multiply $259.99 by .7 to get the price of the bike on sale. 259.99 x .7 = 181.99 (to the nearest cent) This is the sales price. To add sales tax to the price, you take the full price (100%, which equals 1) plus and extra 7% (which equals .07). Multiply the sales price ($181.99) by 1.07 to get the final price. 181.99 x 1.07 = 194.73 (to the nearest cent) Shana will pay $194.73 for the new bicycle. http://answers.yahoo.com/question/index?qid=20120212135640AAyTxSK

anonymous · Answer

All credit goes to Davis: http://answers.yahoo.com/question/index?qid=20120212135640AAyTxSK

anonymous · Answer

lol i saw this ! i just wanted to see if someone could explain it another way but thank you!

anonymous · Answer

the 1.07 is the full price plus the tax rate