ACT Math · Ratios, rates, and percents

A phone costs $600. A store offers a 15% discount, and then charges 8% sales tax on the discounted price. What is the final cost?

A phone costs $600. A store offers a 15% discount, and then charges 8% sales tax on the discounted price. What is the final cost?

Answer and explanation

Answer: C: $550.80

Apply the discount, then the tax on the discounted price. After the 15%15\% discount: 600(0.85)=510600(0.85)=510 dollars. The 8%8\% sales tax on that price gives 510(1.08)=550.80510(1.08)=550.80 dollars, choice C. Choice A ($510) is the price before tax. Choice D ($561) adds 10%10\% rather than 8%8\% to the discounted price. Choice B ($531) does not match any correct order of operations. The tax is charged on the discounted price, so apply the discount first.

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