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.

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

   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:

   \[ \text{Sales Tax} = 5.5% \times \text{Marked-up Price} = 0.055 \times 988.94 \]

   \[ \text{Sales Tax} = 54.3927 \]

   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.