Store A charges $1,200 for repairs with a 6 percent sales tax. Store B charges $1,350 with a 7 percent sales tax. Explain how you would determine the amount of money saved by using Store A instead of Store B?

1 answer

To determine the amount of money saved by using Store A instead of Store B, you would need to compare the total cost of repairs including the sales tax for each store.

For Store A:
1. Calculate the sales tax amount: $1,200 * 6% = $72
2. Add the sales tax to the cost of repairs: $1,200 + $72 = $1,272

For Store B:
1. Calculate the sales tax amount: $1,350 * 7% = $94.50
2. Add the sales tax to the cost of repairs: $1,350 + $94.50 = $1,444.50

To determine the amount of money saved by using Store A instead of Store B, you subtract the total cost at Store A from the total cost at Store B:
$1,444.50 - $1,272 = $172.50

Therefore, by using Store A instead of Store B, you would save $172.50.