SOLUTION: The sales tax on an item in nyc is8.38%. To encourage sales,a store advertises a 20% discount on any item in that store (not including the sales tax). The total cost T in terms o

Question 171732: The sales tax on an item in nyc is8.38%. To encourage sales,a store advertises a 20% discount on any item in that store (not including the sales tax). The total cost T in terms of the origninal price P and the sales tax is
T=0.0838x0.80P is this correct?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
The sales tax on an item in nyc is8.38%. To encourage sales,a store advertises a 20% discount on any item in that store (not including the sales tax). The total cost T in terms of the origninal price P and the sales tax is
T=0.0838x0.80P is this correct?
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I think you mean it's 20% off the original price, then tax is paid as usual.
If so, it's
P = whatever is tagged, + 0.0838P for tax = 1.0838P
T = P*0.8 + 0.0838*0.8*P
T = 0.8*1.0838P
The tax is a % of the price paid. When the sale price is reduced, the tax is reduced at the same ratio.
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