An item originally priced at $50 is discounted 20%, and then 8% sales tax is applied to the discounted price. What is the final price?

Apply the discount first: $50(0.80)=40$ dollars. Then the sales tax applies to the discounted price: $40(1.08)=43.20$ dollars, choice C. Choice B ($40) forgets the tax. Choice D ($54) is $50(1.08)$, charging tax on the original price and never applying the discount. Choice A ($36.80) subtracts $8\%$ from the discounted price, $40(0.92)$, when tax should increase the price. Percent increases and decreases applied in sequence are multiplied, not added, so $0.80\cdot1.08=0.864$, giving $50(0.864)=43.20$.