Asked by Daniel
Lawrence added the taxes to the price of an
item before taking off the discount. Tina
took off the discount and then added the
taxes. Will they get the same purchase
price? Explain why or why not.
item before taking off the discount. Tina
took off the discount and then added the
taxes. Will they get the same purchase
price? Explain why or why not.
Answers
Answered by
oobleck
If the tax rate is t, and the discount rate is r, then for a price p, we have
tax first: (1+t)*pr
tax last: pr*(1+t)
looks the same to me. For example with a 5% tax and 7% discount,
1.05p*0.93 = 0.93p*1.05
tax first: (1+t)*pr
tax last: pr*(1+t)
looks the same to me. For example with a 5% tax and 7% discount,
1.05p*0.93 = 0.93p*1.05