Question

Henrietta has $120 to buy a new bicycle. She finds the bike that she wants to buy on sale for 20% off the regular price of $150. If there is 6% sales tax, which of the following best describes the amount of money Henrietta has with regards to buying the bike.
a.
Henrietta has enough before the tax, but not enough after the tax.
b.
Henrietta has enough money even after the tax.
c.
Henrietta does not have enough money even before the tax.
d.
There is not enough information given.

Answer 1

a. 20% off $150 is $150(0.80) = $120, so she can buy it before tax. With 6% tax: $120(1.06) = $127.20, which is more than $120, so she can't afford it after tax.