Question The original price of a shirt is $16.00. The price of the shirt is discounted by 20%, then a 4% sales tax is added. What is the FINAL price of the shirt after the discount is taken and the tax is added? Round to the nearest penny.
To find the final price of the shirt after the discount and tax are applied, we first need to calculate the amount of the discount and subtract it from the original price.
Discount amount = Original price x Discount rate
Discount amount = $16.00 x 0.20
Discount amount = $3.20
Price after discount = Original price - Discount amount
Price after discount = $16.00 - $3.20
Price after discount = $12.80
Next, we need to calculate the amount of the sales tax and add it to the price after the discount.
Sales tax amount = Price after discount x Tax rate
Sales tax amount = $12.80 x 0.04
Sales tax amount = $0.512
Final price = Price after discount + Sales tax
Final price = $12.80 + $0.512
Final price = $13.312
Rounded to the nearest penny, the final price of the shirt after the discount is taken and the tax is added is $13.31.