Store A sells a watch for $50 and offers a 5% discount. Store B sells the same watch for $60 and offers a 20% discount. The sales tax is 6% for both . After discounts and taxes are applied, from which store should you buy the watch and why?
50 * 0.95 = 47.50
60 * 0.80 = 48.00
so, what do you think?
To determine from which store you should buy the watch, let's calculate the final price after discounts and taxes for both stores.
For Store A:
The watch is priced at $50, and there is a 5% discount.
Discount on the watch = 5% of $50 = $50 * 0.05 = $2.50
Price after discount = $50 - $2.50 = $47.50
Now, let's calculate the tax on Store A:
Sales tax on Store A = 6% of $47.50 = $47.50 * 0.06 = $2.85
Final price for Store A:
Price after discount + Sales tax = $47.50 + $2.85 = $50.35
For Store B:
The watch is priced at $60, and there is a 20% discount.
Discount on the watch = 20% of $60 = $60 * 0.20 = $12
Price after discount = $60 - $12 = $48
Now, let's calculate the tax on Store B:
Sales tax on Store B = 6% of $48 = $48 * 0.06 = $2.88
Final price for Store B:
Price after discount + Sales tax = $48 + $2.88 = $50.88
Comparing the final prices:
Store A: $50.35
Store B: $50.88
Therefore, you should buy the watch from Store A because the final price, after discounts and taxes, is slightly lower than Store B.