A store in Hampton bought a leather chair for $494.47 and marked it up 100% from the original cost. Later on, Sally purchased the leather chair and paid Hampton sales tax of 5.5%. How much, including tax, did she pay for the leather chair?

Answer 1

To find out how much Sally paid for the leather chair including tax, we first need to calculate the marked-up price of the chair and then add the sales tax.

1. Calculate the marked-up price: The original cost of the leather chair is $494.47. Since the store marked it up by 100%, the markup is equal to the original cost.

   $$\text{Markup}=100$$

   The marked-up price is then:

   $$\text{Marked-up Price}=\text{Original Cost}+\text{Markup}=494.47+494.47=988.94$$

2. Calculate the sales tax: The sales tax rate is 5.5%, so we calculate the sales tax on the marked-up price:

   $$\text{Sales Tax}=5.5$$

   $$\text{Sales Tax}=54.3927$$

   We can round this to two decimal places:

   $$\text{Sales Tax}\approx 54.39$$

3. Calculate the total price paid by Sally: Finally, we add the marked-up price and the sales tax to find the total amount Sally paid:

   $$\text{Total Price}=\text{Marked-up Price}+\text{Sales Tax}=988.94+54.39$$

   $$\text{Total Price}=1043.33$$

Therefore, the total amount Sally paid for the leather chair, including tax, is $1,043.33.