Judy is working at a retail store over the summer break. A customer buys an L. E. 470 a shirt that is on sale for 20% off. Judy computes the discount, then adds sales tax of
14%, and tells the customer how much he owes. The customer insists that Judy first
add the sales tax and then apply the discount. He is convinced that this way he will
save more money because the discount amount will be larger.
Answer the following questions:
1) Calculate the discount before adding the tax.
2) Calculate the selling price; give your answer to a reasonable degree of accuracy and justify.
3) Calculate the discount after adding the tax.
4) Calculate the selling price after the tax, give your answer to a reasonable degree of accuracy
and justify.
5) Does it make sense? Justify.
6) Is the customer right?
7) Would it work for any percentage discount and any sales tax percentage? Justify.