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 can follow these steps:

1. Calculate the markup price: The store marked up the original cost of the chair by 100%. Since the original cost is $494.47, the markup amount is the same as the original cost:

   \[ \text{Markup} = 100% \times 494.47 = 494.47 \]

   Therefore, the marked up price (selling price) is:

   \[ \text{Selling Price} = \text{Original Cost} + \text{Markup} = 494.47 + 494.47 = 988.94 \]

2. Calculate the sales tax: The sales tax is 5.5% of the selling price. We can calculate this by multiplying the selling price by the sales tax rate:

   \[ \text{Sales Tax} = 5.5% \times 988.94 = 0.055 \times 988.94 \approx 54.40 \]

3. Calculate the total amount paid by Sally: To find the total amount that Sally paid, we add the selling price and the sales tax together:

   \[ \text{Total Amount} = \text{Selling Price} + \text{Sales Tax} = 988.94 + 54.40 \approx 1043.34 \]

Thus, the total amount Sally paid for the leather chair, including tax, is approximately $1043.34.