Terry has a coupon for sunglasses at a store near his house. With the coupon, when you buy one pair of sunglasses, you get the second pair for 30% off. Terry wants to use this coupon to buy two pairs of sunglasses that are each $45. Sales tax is 8%. How much does Terry save by using this coupon instead of buying the sunglasses at full price at this store?

1 answer

First, let's calculate the total cost of buying two pairs of sunglasses without the coupon.

Since each pair is $45, the cost of two pairs would be 2 * $45 = $90.

Now, let's calculate the sales tax on $90. Sales tax is 8%, so the tax would be 8% of $90, which is 0.08 * $90 = $7.20.

Therefore, without the coupon, Terry would pay $90 + $7.20 = $97.20 for two pairs of sunglasses.

Now, let's calculate how much Terry saves by using the coupon.

With the coupon, Terry gets the second pair for 30% off, which means he would pay the full price of $45 for the first pair and 70% of $45 for the second pair.

So, he would pay $45 + 0.70 * $45 = $45 + $31.50 = $76.50 for two pairs of sunglasses with the coupon.

Therefore, Terry saves $97.20 - $76.50 = $20.70 by using the coupon instead of buying the sunglasses at full price.