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1.11. (-) A store offers a 15% promotional discount for its grand opening. The clerk believes that the law requires the discount to be applied first and then the tax computed on the resulting amount. A customer argues that the discount should be applied to the total after the 5% sales tax is added, expecting to save more money that way. Does it matter? Explain.

1.11. (-) A store offers a 15% promotional discount for its grand opening. The clerk believes that the law requires the discount to be applied first and then the tax computed on the resulting amount. A customer argues that the discount should be applied to the total after the 5% sales tax is added, expecting to save more money that way. Does it matter? Explain.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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degree. What should the correct statement of the odds have been? 1.11. (-) A store offers a 15% promotional discount for its grand opening. The clerk believes that the law requires the discount to be applied first and then the tax computed on the resulting amount. A customer argues that the discount should be applied to the total after the 5% sales tax is added, expecting to save more money that way. Does it matter? Explain.
Transcribed Image Text:degree. What should the correct statement of the odds have been? 1.11. (-) A store offers a 15% promotional discount for its grand opening. The clerk believes that the law requires the discount to be applied first and then the tax computed on the resulting amount. A customer argues that the discount should be applied to the total after the 5% sales tax is added, expecting to save more money that way. Does it matter? Explain.
Expert Solution
Step 1

Here, the general formula applied on the product price is shown below.

Payable price by the customer=Product original price×1-D×1+THere,Promotional Discount=DSales tax=T

 

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