Question 1209555
<font color=black size=3>
I'll assume that xx is a typo and it should be x.


x = cost of the item in dollars


The coupon saves her 40%, so she pays the remaining 60%
60% of x = 0.60x = amount she pays before tax is applied.


The 5% tax will bump the price up to 1.05*0.60x = <font color=red>0.63x</font> dollars.
The 1.05 can be thought of as 1+0.05 = 100% + 5% = 105%
Anything over 100% increases the price, which is why tax is associated with such a percentage.


Alternatively you can think of it like this: 0.60x+0.05*0.60x = 0.60x+0.03x = <font color=red>0.63x</font>
The 0.60x portion is what she pays before tax, and 0.05*0.60x = 0.03x is the tax itself.



Answer: <font color=red>0.63x</font>
</font>